Australia to Increase National Minimum Wage, Modern Awards Wage

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Australia’s national minimum wage (NMW) and modern award minimum wages will increase by 3% from the first full pay period falling on or after 1 Jul 2019. The Fair Work Commission announced the increases on 30 May 2019 and will publish further determinations about the minimum pay rates for each of the modern awards. According to the commission, around 2.2 million employees, or 21.0% of the workforce, have their wages set by the NMW or by a modern award minimum wage.

Modern awards were introduced on 1 Jan 2010 and are industry- or occupation-based and apply to employers and employees who perform work covered by the award. The awards cover minimum employment terms and conditions and are additional to the National Employment Standards (NES). The modern award minimum wage is used to calculate allowances, overtime pay, loadings and penalties. Employees who aren’t covered by an award or agreement are subject to the national minimum wage and NES.

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Stephanie Rosseau
by Stephanie Rosseau

Principal, Mercer’s Law & Policy Group

Fiona Webster
by Fiona Webster

Principal, Mercer’s Law & Policy Group

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