The Fair Work Commission (FWC) has announced a 3.3% increase to minimum wages. The increase will apply from the first full pay period starting on or after 1 July 2017. The 3.3% increase is the highest increase since 2011 and a significant jump compared to last year’s 2.4% increase.
UPDATED PAY SCALE SUMMARIES
Please find here the updated pay scale summary for the Social, Community, Home Care and Disability Services Industry Award 2010 for the period 1 July 2017 to 30 November 2017. The increase only applies to employees that get their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.
- Award Free Employees
The new national minimum wage will be $694.90 per week or $18.29 per hour. The national minimum wage applies to employees who aren’t covered by a modern award or registered agreement.
- Award Covered Employees
Most employees are covered by a modern award. Modern award rates will increase by 3.3%. As mentioned, Employer Assist is preparing updated pay scale summaries which will be emailed to members once completed.
If an employee is already paid above the modern award, employers may be able to absorb the increase. However, employers will need to ensure that the employee’s wage is at least equal to or better off overall compared to the employee’s minimum entitlements under the modern award. Contact us for assistance with these calculations.
- Enterprise Agreements
If a registered agreement applies to the workplace, employers will need to ensure the minimum base rates in the agreement remain at least equal to the modern award rates. If not, the agreement rates will need to be increased to match the new modern award rates.
Please note, these rates include the ERO (Equal Remuneration Order) increase. We are still awaiting the updated Pay Guide from Fair Work Ombudsman however we are confident that the pay scale attached complies accordingly. Should there be any changes to the rates we will let you know.