2018 Annual Wage Review – Decision issued

This morning, 1 June 2018, the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling. The FWC has awarded an increase of 3.5% to all adult full time weekly rates in the Modern Awards from the first pay period commencing (ppc) on or after 1 July 2018. Proportionate increases will flow to part time and casual workers, juniors, apprentices and trainees.

The 3.5% increase results in the National Minimum Wage (NMW) increasing to $719.20 per week (or $18.93 per hour). Casual workers who remain ‘award free’ will have the casual minimum rate increased to $23.66 per hour from ppc 1 July 2018.

It is important for employers to remember that it will not result in the same dollar value increase for each classification level – higher award rates will receive a higher increase in terms of the dollar amount flowed-on. For example, a 3.5% increase in the NMW is a $24.30 per week increase whereas a 3.5% increase in the standard trade-qualified (C10) rate, currently $809.10 per week, equates to an increase of $28.30 per week.

Allowances contained in each Modern Award, which are calculated as a percentage of the ‘standard rate’, will of course increase following the 3.5% per week increase to the ‘standard rate’ they are calculated from. Furthermore, expense-related allowances, specific to each Modern Award, will increase as necessary subject to the formal determinations issued by the FWC.

ES subscribers can anticipate updated versions of their Modern Award/s being made available online in the week beginning 25 June.