The Fair Work Commission has just announced a 3.5% increase to minimum wages following its 2018 Annual Wage Review. The increase will apply to base rates of pay from the first full pay period starting on or after 1 July 2018, and the new national minimum wage will be $719.20 per week or $18.93 per hour (based on a 38 hours week for a full-time employee), which constitutes an increase of $24.30 per week.

What do I need to do?

Fair Work are currently updating their pay tools with the new pay rates, and it usually takes the Commission 2-3 weeks to update the pay rates in each award. You’ll then need to review your employees pay rates, and be ready to update them in your payroll software for the first full pay period starting on or after 1 July 2018. All data needed will be provided from the company’s time tracking software.

Who does the increase apply to?

The change only applies to employees that get their pay rates from the national minimum wage, a modern award or in some cases a registered agreement. The 3.5% increase will also apply to:

• junior employees;
• employees to whom training arrangements apply; and
• employees with a disability.

Employers should also check if there are other additional costs in any piece rates or allowances that use the base rate of pay in the modern award for calculation.

Most employees are covered by an award. If you’re not sure which award applies to you or your employees you can use Find my award on the Fair Work website.

Find out more

Additional information about the minimum wage increases is available from:

Annual Wage Review Decision

Fair Work Commission – Annual Wage Review 2018 page

Where to get help?

If you are having difficulty identifying which of your employees are affected, or their new rates of pay, you can contact the Fair Work Commission for assistance.

And if you are struggling with updating your payroll software, or could use some refresher training, please call us on 4922 6128.

Tony Muller

Chief Technology Officer

Tony has business management and information technology experience gained in the public and private sectors. He has worked with the Queensland Government Chief Procurement Office on IT tenders, and is also an Australian Institute of Management graduate.

Tony is passionate about how technology can facilitate business operations, and is always looking for innovative solutions to business requirements.