How to make sure you are paying the right wages after the National Minimum Wage Increase


The Fair Work Commission recently completed its annual National Minimum Wage Review, deciding to increase the national minimum wage by 2.5%. This increase applies to the minimum wage for all classifications in Modern Awards, and a number of monetary allowances have also been increased. The new rates apply from the first pay period that starts on or after 1 July 2015.

A convenient means of checking the award wage rates that apply to your employees is to use the Pay Guides published by the Fair Work Ombudsman. These guides have minimum pay rates for full-time, part-time and casual employees in the applicable Modern Award. They also show monetary allowances and frequently used penalty rates for each classification.

These Pay Guides will not apply if the employee is not covered by a Modern Award or if your business has a registered agreement that covers the employee. But for many employers they are a very useful reference.

The Fair Work Ombudsman has now updated all the Pay Guides to reflect the 2.5% pay increase and the updated pay guides are available on the Fair Work Ombudsman website.

If you are not sure which award covers your employees, the website also includes a section to assist you in finding the right award.