From 1 July 2017, employers who pay workers covered by a Modern Award or the national minimum wage must increase their pay by 3.3%.

The increase comes a day after the Commission finally released details on how changes to penalty rates will be phased in.

Employers across many industries may be impacted by both the wage increase and the long awaited drop in penalty rates.

Combining the Annual Wage Increase and the Penalty Rates Reduction

From the first full pay period after 1 July, employers who have workers covered by the national minimum wage or a Modern Award must get a 3.3% increase in their pay.

However, employers in the following industries may be able simultaneously reduce some penalty rates as well:

For more details on how the penalty rates are being reduced, and how much, please see our blog post.

How to Apply the Wage Increase

Although the wage increase is aimed at improving pay packets for workers covered by Awards, it may also affect the pay rates in enterprise agreements. Note that applying the increase to your Agreement rates may not be so simple – you may be entitled to pass on a lower increase, or no increase at all.

Whether you pay your staff under an Enterprise Agreement, Modern Award wages or the national minimum wage, we’ve got you covered.

Consider the Following Options

  1. Join our webinar on Wednesday 21st June at 11am where Sophie Garland, Senior Workplace Lawyer, will explain both FWC decisions.
  2. Contact us to speak about how our managed payroll solution with in-built Award Interpretation will ensure that you’re always compliant, no matter what the change is.
  3. Request our 2017 wage update service here, particularly if you have an enterprise agreement.
  4. Speak to a member of our legal team on 1300 144 120 now.