Minimum Wage Increase

Written by Sue on July 1, 2015. Posted in Business, Xero Payroll

The national minimum wage increases by 2.5% from 1st July, 2015.

This increase applies to employees who aren’t covered by an award or agreement and also applies to juniors, trainees, apprentices, employees with a disability and to piece rates. Most employees are covered by a modern award. Check FairWork Award Finder if in doubt

The new national minimum wage will be $656.90 per week or $17.29 per hour.

FairWork says you can’t get two separate pay rates for the one pay period. Therefore, if a wage increase applies to an employee on the 1st of July then it covers the first full pay period after that date.

In other words, if they are being paid for a fortnight that covers one week in June and one week in July, the employer needs to pay at the old rate for the fortnight straddling June and July, and to apply the wage increase from the first full pay period commencing after the 1st of July.