The Fair Work Commission’s Minimum Wage Panel has announced that, effective July 1st, the national minimum wage and Modern Award minimum rates are to be increased by 3.5%. In short, what does this mean?
- the National Minimum Wage increases to $719.20/ week or $18.93/hour
- National Minimum Wage or Modern Award rates compliance is to apply for the first full pay period on or after 1 July 2018
- Enterprise Agreements need to reflect new minimum base rates in existing EAs
- For new EAs, the new minimum base rates are a baseline for “better off overall” (BOOT) testing
- Some allowances may also need to increase
Other threshold changes
- The high income threshold, which limits an employee’s eligibility to pursue an unfair dismissal claim, increases to $145,300, from $142,000. The exception is if they are under an award or agreement
- Unfair dismissal compensation is now &72,650, capped at half the high income threshold.
- The Eligible Termination Cap (ETP) threshold will increase to $205,000