Fair Work have announced the annual wage indexation for the 2019/2020 financial year at 3% or $19.49/hour as of 1 July 2019. This increase means that the national minimum wage earnings receive a modest boost of $21.28 per week to $740.62.
This applies to base pay rates from the first full pay period starting on or after 1 July 2019.
The 30-day notice means businesses have time to review any enterprise agreement in place to ensure that the hourly rates in effect from 1 July meet with the BOOT test (Better Off Overall Test).
This also means that any flexibility agreement for your business needs to be looked at as well other additional costs in any piece rate or allowance calculations that use the base rate of pay in the modern award.
The increase will also apply to:
- Junior employees
- Employees to whom training arrangements apply
- Employees with a disability
The information provided in this blog is a guide on the subject matter. Specialist advice should always be obtained for your circumstances.