Published on Aug 13, 2018

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Did you notice a small pay rise starting in July 2018? This might be thanks to a rise in the minimum wage in modern awards set by the Fair Work Commission.

In Australia 2.3 million employees have their pays set by an award and in June 2018, the Fair Work Commission completed its annual wage review.

The 2017–18 Annual Wage Review applies to all employees covered by modern awards, enterprise awards, as well as award free employees.

In conducting the review, the Fair Work Commission assess overall workforce participation, relative living standards and the needs of the low paid, as well as other economic considerations.

The outcome?

The Fair Work Commission decided that minimum wages in modern awards will be increased by 3.5% from the 2018-19 financial year. The first full pay period for these changes commences on or after 1 July 2018.

An increase of $24.30 per week sets the national minimum wage at $719.20 per week or $18.93 per hour.

wage increases can be absorbed into existing payments if they already fall over the award, as per the absorption clause in the applicable modern award.

The national minimum wages for juniors, employees under training arrangements, and employees with a disability will also see their wage increased by 3.5%. Employees under a casual award will be covered by a default casual loading which remains at 25%.

The review noted overall business conditions in Australia are at their highest levels since the global financial crisis.

For more information on the annual wage review, please visit the Fair Work Commission.

Please note: This only applies to employees under the National industrial relations (IR) system. State IR systems have had different increases.