Annual Wage Review: A lower increase than expected on 1 July

The Fair Work Commission (‘FWC’) today delivered the Annual Wage Review decision. The increase of 3% was less than those of the last two years (3.5% and 3.3% respectively).

Reasons given by the FWC for the lower increase were the recent fall in GDP growth and the drop in inflation, as well as the tax transfer changes that have occurred over the last year. The re-election of the Morrison Government also meant that the intervention in the process foreshadowed by Bill Shorten did not occur.

The new minimum annual wage will be $740.80 per week or $19.49 per hour, an increase of $21.60 per week or 56 cents per hour. This applies from the first full pay period on or after 1 July.

Casual loading remains at 25%, other than for those employed under the Business Equipment Award 2010, where the loading has increased to 24%.

All Award rates will also increase by 3% rounded up or down to the nearest 10 cents, as will junior award rates, piece rates and those of disabled workers. The National Training Wage will also increase by 3%.

Due to the rounding factor, care will need to be taken when determining the correct wage to ensure that under or over payment does not occur.

The FWC and Fair Work Ombudsman will update the wage tables found in Awards and on their websites over the next few weeks in preparation for 1 July.

Should you have any questions regarding the Annual Wage Review or any Award payments, please contact a member of our employment law team.

 This article was written by Senior Associate, Elizabeth Olsson.

Practice Area: Employment

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