On Friday, 1 June 2018, the Fair Work Commission Wages Panel handed down their 2018 Annual Wage Review. They decided to increase the minimum weekly wage by 3.5% from the first full pay period on or after 1 July 2018. The Fair Work Commission will now flow this increase through to the modern awards and therefore the wages shall be increased for all award classifications.
Please be advised that any allowance in a modern award that is based on a percentage of the standard rate will also be increased.
As is standard with the minimum wage decision the increase can be absorbed against an over award payment as long as the wage remains above the award rate for the applicable classification.
For those clients who have enterprise agreements that mandate wages are increased by the Fair Work Commission minimum wage decision those rates will need to be increased by 3.5% as per the agreed date in the enterprise agreement.
In addition, the Fair Work Act 2009 states that wage rates in enterprise agreements must not be less than the base rate of pay that would be payable to the employee under a modern award (the award rate) if the modern award applied to the employee. As the award rate will increase from the first full pay period on or after 1 July 2018 all clients with employees covered by enterprise agreements will need to conduct a comparison of existing enterprise agreement wage rates being paid against the revised modern award rate to ensure that their enterprise agreement rates remain at least equal to modern award rates.
We recommend that all clients review their Modern Award, Contracts of Employment or Enterprise Agreement to determine if they are required to pass on a wage increase as a result of this decision.
If you have any questions in regards to the Annual Wage Review please do not hesitate to contact us. Furthermore, if you require assistance with implementing the increase including calculations and comparisons please contact one of our Workplace Relations Consultants on 1300 936 223 or email firstname.lastname@example.org.
Elle Smith | Administration | Quartz Consulting
Level 5, 2-4 Kirksway Place, Battery Point, Tasmania, 7004
t 1300 936 223 | f 03 6223 8165
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