Today’s increase to the National Minimum Wage (NMW) will take effect in the new financial year, at the start of the first full pay period starting on or after 1 July.

The Fair Work Commission Full Bench (FWCFB) live streamed the announcement to increase the NMW by 3 per to $740.80 per week or $19.49 per hour, which amounts to an increase of $21.60 per week or, $0.56 per hour.

When explaining their decision, the FWCFB stated: “Despite the recent fall in GDP growth, the Australian economy has performed moderately well and the relevant data are all indicative of a strong labour market”.

It stated the recent decline in GDP growth and drop in inflation led to the decision on a lower increase than in the previous financial year.

The FWCFB’s obligation to encourage employers to engage in collective bargaining with their employees and a desire to improve the relative living standards of low paid employees also led impacted the decision.

A copy of the full decision can be found here.

Employee Relations Advice Centre (ERAC) offers an industrial award service where subscribers can access a copy of the most current award and wages, including a breakdown of wages, as well as updates on any changes to the award. If wish to receive these updates, call (08) 9365 7660 or advice@cciwa.com.

► If you have any questions regarding today’s decision in preparation for the new financial year, contact CCIWA’s Employee Relations Advice Centre on (08) 9365 7660 or advice@cciwa.com.