2019 National Minimum Wage and Penalty Rates Update

 Thursday, June 20, 2019

The Fair Work Commission has conducted its Annual Wage Review and concluded to increase the national minimum wage and all modern award minimum wages by 3%.

The increase to the minimum wages will apply for the first full pay period from 1 July 2019. From that time, the national minimum wage will increase to $740.80 per week (from $719.20) or $19.49 per hour (from $18.93).

This increase will apply to employees who are paid in accordance with the minimum wage or are covered by a modern award. The increase may also apply to employees covered by a collective agreement under which the pay rates are linked to the Annual Wage Review.

Further changes are also being implemented to some Sunday penalty rates in certain hospitality and retail industry awards following on from the Commission’s decision in 2017. These changes are as follows:

penalty rates for full and part-time employees under the Hospitality Award will decrease to 150% (casual employees will remain at 175%);

penalty rates for full and part-time employees working between 7am and 9pm under the Pharmacy Award will decrease to 165% and casual employees will decrease to 190%;

penalty rates for Level 1 full and part-time employees under the Fast Food Award will decrease to 125% and Level 1 casual employees will decrease to 150%.

There are widespread changes to the penalty rates under the Retail Award – please contact our office for specific advice as to those changes.

For further information in relation to the changes to the national minimum wage or penalty rates and how they affect your business, please contact Skye Engwerda on (03) 5480 6344.