Minimum wages to increase by 3.3%
The Fair Work Commission’s panel for annual wage reviews released its Annual Wage Review 2016-2017 decision on 1 July 2017.
The decision provides that minimum award wages will increase across the board by 3.3% effective 1 July 2017.
This decision will result in the following increases to the Federal minimum wage rates:
- Weekly minimum wage: from $672.70 to $694.90 (increase of $22.20),
- Hourly minimum rate: from $17.70 to $18.29 (increase of 59 cents).
Otherwise, the percentage increase will apply to the minimum rates of pay contained in awards. Increases to minimum weekly wages will be rounded to the nearest 10 cents.
In fixing the increase at 3.3% (up on last years 2.4% increase), the Panel observed that the prevailing economic circumstances provide an opportunity to improve the relative living standards of the low paid and to enable them to better meet their needs.
Employers should now start to review their employees’ existing rates of pay to ensure compliance with minimum rates when the above changes commence on 1 July 2017.