Annual wage review 2017-18 decision

Thursday July 5th 2018
Man at retail store.

The Fair Work Commission is responsible for reviewing and setting minimum wages for employees in the national workplace relations system.

The Expert Panel of the Fair Work Commission has handed down its Annual Wage Review 2017-18 Decision which is operative from 1 July 2018.

The National Minimum Wage will increase by 3.5 per cent from the first full pay period after 1 July 2018.

What is the operative date for the minimum wage increase?

The wage increase is operative from the first full pay period that starts on or after 1 July 2018.

Award wage rates for full-time adult employees will be increased by 3.5 per cent.

Can the wage increase be absorbed into over-award payments?

Yes. If an employer pays above-award rates, then the wage increase can be absorbed into these over-award payments.

Does the wage increase apply to award/agreement free adult employees?

A National Minimum Wage Order applies to adult employees who are not covered by an award or enterprise agreement. The National Minimum Wage Order includes:

  • The National Minimum Wage will be increased to $719.20 per week or $18.93 per hour; and
  • Casual employees will receive a 25% loading.

Adult employees who are award/agreement free must not be paid less than the National Minimum Wage.

Does the wage increase apply to award/agreement free juniors, trainees and apprentices?

Most juniors, apprentices and trainees are covered under an award or enterprise agreement and therefore the rates of pay in the relevant award or agreement apply.

Special national minimum wages for any award/agreement free juniors, trainees and apprentices are included in the National Minimum Wage Order.

Does the decision impact upon minimum wages for employees with a disability?

Yes. The following minimum wage arrangements apply to employees with a disability:

  1. Award-covered employees whose disability does not impact upon their productive capacity are entitled to the relevant modern award wage rate.
  2. Award-covered employees who are unable due to their disability to earn the full modern award wage rate are covered by supported wage provisions in modern awards.
  3. For award/agreement free employees with a disability, the National Minimum Wage Order contains two special national minimum wages for employees with a disability. The rate that applies depends on the extent to which their disability impairs their productive capacity.

Is there any change to the Superannuation Guarantee?

The existing 9.5 per cent contribution rate will remain in place until 30 June 2021. After this date it will increase to 10 per cent.

Further advice or assistance

For further advice or assistance on this topic, or any workplace relations matter, Employment Plus clients who have placed two or more candidates have free access to the Ai Group Workplace Advice Line.  Call 1300 862 217 8.30am – 5.15pm AEST Mon-Fri

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