2015 Annual Wage Review Decision

ADAQ has received advice from Employer Services that on Tuesday, 2 June 2015, the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling. The FWC has awarded an increase of 2.5% to all adult full time weekly rates in the Modern Awards from the first pay period commencing (ppc) on or after 1 July 2015. Proportionate increases will flow to part time and casual workers.

The 2.5% increase results in the National Minimum Wage (NMW) increasing to $656.90 per week (or $17.29 per hour). Casual workers who remain ‘award free’ will have the casual minimum rate increased to $21.61 per hour from ppc 1 July 2015.

It is important for employers to remember that it will not result in the same dollar value increase for each classification level – higher award rates will receive a higher increase in terms of the dollar amount flowed-on. For example, a 2.5% increase in the NMW is a $16.00 per week increase whereas a 2.5% increase in the standard trade-qualified (C10) rate, currently $746.20 per week, equates to an increase of $18.70 per week.

Allowances contained in each Modern Award, which are calculated as a percentage of the ‘standard rate’, will of course increase following the 2.5% per week increase to the ‘standard rate’ they are calculated from. Furthermore, expense-related allowances, specific to each Modern Award, will increase as necessary subject to the formal determinations issued by the FWC.

ADAQ Members who have questions about this information can contact the Employer Services advice line on (07) 3220 3500.

Further information on this decision, as well as on other Industrial Relations topics of note can be found in the June issue of Employer Services' Newsletter 'Relations'.

Employers who pay over award wages can absorb this and other Minimum Wage increases provided always that no employee can be paid less than the base rate of pay that would be payable to them under a modern award.