National minimum wage and Modern Award minimum rates now in effect.

Employee Relations & IR

The Fair Work Commission’s Minimum Wage Panel decision about the 3.5% national minimum wage and Modern Award minimum increase is in effect, for the first full pay period on or after 1 July 2018.

In short:

  • The National Minimum Wage increases to $719.20/ week or $18.93/hour
  • Existing Enterprise Agreements (EA’s) need to reflect new minimum base rates
  • 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