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The Full Bench of the Fair Work Commission has today determined to increase the National Minimum Wage by 2.4%. In its reading of the decision, the Full Bench noted that there was generally a positive outlook in terms of the Australian economy, and that whilst the increase should not result in ‘inflationary pressure’ or impact on employment levels, this wage increase represented an opportunity to help those low paid employees in Australia.

The effect of the increase will mean that the National Minimum Wage will increase by $15.80, from the current $656.90 to $672.70 ($17.70 per hour).

The increase will take effect from 1 July 2016. The Full Bench also stated that the same increase of 2.4% will be applied to the minimum rates in each Modern Award.

Employers should ensure that where the Modern Award rate is being paid, the increase is passed on to their Award-covered employees from 1 July 2016. It is also essential that Employers review current pay rates for employees currently receiving over-Award payments, or engaged under Enterprise Agreements, to ensure that they do not underpay their employees when compared against the revised award rates, and/or continue to comply with the remuneration provisions of the Enterprise Agreement.

Aitken Legal can be contacted for any enquiry about the wage increase as it affects Modern Awards or Enterprise Agreements.

Chris Campbell, Partner

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