2015 Annual Wage Review – 2.5% increase
The Fair Work Commission has completed its annual wage review for the 2015/16 financial year, announcing a 2.5% increase to minimum wages. This increase takes effect from 1 July 2015 and applies to both the national minimum wage and modern award minimum rates of pay.
From 1 July 2015, the new national minimum wage is $656.90 per week ($17.29 per hour). This applies to all employees (other than those in the state system) who aren’t covered by a modern award or enterprise agreement.
Employers need to ensure the remuneration paid to their employees meets the minimum payment obligations contained in the applicable modern award, workplace agreement or national minimum wage order (for award/agreement free employees).
Underpayments expose employers to claims from their employees. Many employers are unaware of the additional costs these claims involve beyond reimbursing the affected employee, including:
- the time consuming and costly audit process required to rectify the underpayment and ensure there are no further underpayments moving forward;
- potential fines of up to $51,000 for companies and $10,200 for individuals; and
- disruption to the employer’s business.
When it comes to underpayments, prevention really is better than the cure. If you require assistance checking pay rates, please contact our Business and Employment Law team – Matt Bell on 4616 9860 or Michael Gibson 4616 9810.
Prepared by Michael Gibson
This publication has been carefully prepared, but it has been written in general terms and should be viewed as broad guidance only. It does not purport to be comprehensive or to render advice. No one should rely on the information contained in this publication without first obtaining professional advice relevant to their own specific situation.