New minimum wage takes effect from Sunday

The Fair Work Ombudsman is calling on businesses to check the new minimum pay rates that apply ahead of a new national minimum wage coming into effect from the first pay period on or after Sunday, 1 July 2018.

From this date, the national minimum wage will increase to $719.20 per week, or $18.93 per hour. The base rates of pay in modern awards will also increase.

This follows the Fair Work Commission’s announcement of a 3.5 per cent increase to the national minimum wage earlier this month.

The Fair Work Ombudsman is the agency responsible for ensuring that workplace participants are aware of their obligations and workplace rights.

Fair Work Ombudsman Natalie James says it is important that employers check the new wage rates that apply to their businesses to ensure that they are paying their workers correctly.

The Fair Work Ombudsman’s online materials, including its Pay and Conditions Tool (PACT), have been updated to reflect the wage rate changes. The updated tool can assist employers and employees to calculate the new wage rates that will apply to them.

"Employers must take action to pass on the wage increase to their employees to make sure workers are receiving their full lawful entitlements," Ms James says.

"Too often we find that the underpayment of wages can be traced back to a failure by employers to apply annual wage rises.

"We are here to help employers remain up to date with their workplace obligations, but all employers have a responsibility to check the law and make sure they remain compliant to avoid unexpected costs later down the track.

"We are making this easier than ever with the great range of resources available on our website at www.fairwork.gov.au."

Earlier this year, the Fair Work Ombudsman launched its Small Business Showcase, an online hub to assist small businesses access the information and resources they need to ensure successful and compliant workplaces.

The Fair Work Ombudsman’s online materials have also been updated to reflect further changes to penalty rates affecting the Hospitality, Pharmacy, Fast Food and Retail industries, as determined by the Fair Work Commission. These also come into effect from 1 July 2018.

Other changes will also apply to certain industries and modern awards, with all details available on the Fair Work Ombudsman’s website.

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