Today the Fair Work Commission (FWC) announced an increase of 3.5% to the national minimum wage, beginning July 1.
The key facts from this morning’s announcement are:
- Employees will be entitled to at least $719.20 per week or $18.93 per hour.
- This will mean that businesses will need to pay an extra $24.30 every week to employees earning the minimum wage.
- The increase of 3.5% also applies to modern award wages.
This number is up from last year’s 3.3% wage rise, but is under half of the unions’ 7.2% goal.
While the unions will be fighting for continual growth, businesses have been disappointed with the FWC’s decision, with the Australian Chamber of Commerce and Industry preferring an increase of 1.9%.
The Australian Retailers Association has also called out the increase as a stifle on ‘jobs growth within the retail sector’ sparking an ‘unsteady trading environment’.
While the decision is unwelcome by some business groups, employers need to act quickly and prepare for the wage increase by July 1, which is expected to impact around 2.3 million Australians.
Updating staff payment is simple with the foundU Platform, which lets employers easily manage all pay increases. The process involves a click of a button, and pays are updated automatically.
More information on the FWC’s decision can be found here.