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2017 Wage Increase

Effective 1 July 2017

The Fair Work Commission has today released its 2017 Annual Wage Review decision, with wage increases taking effect from 1 July 2017.

The new national minimum wage is being increased by 3.3%, bringing it to $694.90 per week, or $18.30 per hour. This equals an increase of $22.20 per week to the weekly rate or 0.59 cents per hour to the hourly rate.

The minimum rates set out in modern awards will also be increasing by 3.3% with weekly wages being rounded to the nearest 10 cents.

Employers should now carefully review their existing wage arrangements and implement the necessary wage increases, keeping in mind the changes to penalty rates which take effect from 1 July 2017 and ensure that minimum wage rates are at least commensurate with the underpinning modern award.

In the event that you are paying the award rate of pay, you will need to review the minimum rates in the new award once they are published, and adjust or back pay the new rate from the first full pay period on or after 1 July 2017.

If you are paying above the award, you can absorb the increase, however you must review such arrangements to verify that you are continuing to pay above the minimum award rate.

The applicable Awards, pay guides and classification schedules will be available to download from our website as soon as they become available from Fair Work Australia.

If you have any questions about this or any other HR matter, you can contact HR Advice Online by sending an email to [email protected] or by calling 1300 720 004.

Information in HR Advice Online guides and blog posts is meant purely for educational discussion of human resources issues. It contains only general information about human resources matters and due to factors such as government legislation changes, may not be up-to-date at the time of reading. It is not legal advice and should not be treated as such.

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