National Wage to increase 3% from 1 July 2019
On 30 May 2019 the Fair Work Commission handed down the latest National Wage Case decision. This decision provides for a 3% increase to be applied from the first full pay period after 1 July 2019. However, this does not mean that everyone gets a 3% pay increase.
Minimum rates of pay
The National minimum rate of pay will increase by 3%. The minimum hourly base rate of pay after 1 July 2019 will be $19.49 and the minimum weekly base rate will increase to $740.80 for a 38 hour week. These base rates do not include any loadings, such as casual loading. For casual employees an additional 25% will be applied to the base rate of pay.
Award rates of pay
All Modern Award base rates of pay will also increase by 3%. The actual rate to be paid will depend on the existing base rate in each Award. It is anticipated that the published Award rates will be updated prior to 1 July 2019, and these will be available on the Fair Work Commission website.
Enterprise Bargaining Agreement rates of pay
Base rates of pay under an Enterprise Agreement will only be affected in the following two circumstances:
- If the new Award base rate of pay exceeds the base rate of pay under the Enterprise Agreement, in which case the higher of the Award or Enterprise Agreement base rate would become payable.
- If the Enterprise Agreement itself provided for increases based on the National Wage Case decision.
Unless either of the above two circumstances arise, the rates of pay under Enterprise Agreements do not change.
Non-Award contracts of employment
Where employees are not covered by an Award or an Enterprise Agreement, the 3% increase would not apply to their base rate of pay. The only exceptions to this would be if there was a clause in their employment contract which provided for an increase based on the National Wage Case decision or if their wage rate fell below the minimum rate of pay.
If you require assistance implementing the 3% increase or reviewing your employee’s wage rates, please contact us on email@example.com or 3218 3919.
Please note that this publication is intended to provide a general summary and should not be relied upon as a substitute for personal advice.