By Sean Melbourne

Each year, the Fair Work Commission reviews the national minimum wage and the minimum wage rates in all Awards. On 30 May it announced that the national minimum wage will increase by 3% from 1 July 2019. The new minimum wage will be $19.49 per hour, which equates to $740.80 per week.

The minimum rates in all Awards will also be increased by 3%.

So, what does this mean for businesses?

If your employees are paid the minimum wage or paid the minimum rates in an Award, you’ll need to increase their wage from the first full pay period starting on or after 1 July. This means adjusting your payroll system accordingly, so the increased rate is added to all employee wages.

All-inclusive salaries

If you pay your employees an all-inclusive salary, you’ll need to make sure the salary is high enough to cover all of their Award entitlements, with the 3% increase taken into account. This means you need to calculate the total amount an employee is entitled to under their Award and ensure that amount is less than their all-inclusive salary. If it is not, you will need to increase the employee’s salary.

Annualised salaries

If you pay your employees an annualised salary under an Award, you’ll need to do the same exercise to ensure you’re paying them adequately.

Other points to note

You may be interested to know that the Commission rejected the ACTU’s push for a ‘living wage’ in its ruling this year. This year’s minimum wage increase is slightly less than the 3.5% that was awarded last year.

Want to know more?

Remember, penalties apply to employers who fail to meet minimum wage obligations. If you need any help to ensure your business is compliant, or want to understand how these changes affect your business, please contact Sean Melbourne on 0411 647 453 or

You can download a copy of the article here.

By | Published On: 18th June, 2019 | Categories: Employment law, Guides | Tags: , |