The Fair Work Commission has made the decision to increase the National Minimum Wage in two steps.
First, the Commission has realigned the National Minimum Wage with the C13 classification wage rate instead of the C14 classification wage rate.
Secondly, it has further increased the National Minimum Wage by 5.75 per cent, providing a total increase to the National Minimum Wage of 8.6 per cent to $882.80 per week or $23.23 per hour.
The decision also increases modern award minimum rates by 5.75 per cent, with all changes to take effect from 1 July.
As a result, the Australian Public Service Commission (APSC) says all Commonwealth employers have obligations under the Fair Work Act 2009 to ensure their employees are paid correctly.
“The hourly base rate of pay for an employee must not be less than the hourly base rate payable under the award which covers that employee,” the Commission said in a statement.
“For existing industrial instruments, Agencies should ensure that employees are paid at least the new award minimum pay rates. As an example, the minimum award hourly pay rate for an APS Level 1 employee will increase from $24.25 to $25.64 on 1 July.”
It said the Fair Work Commission would update minimum pay rates in awards, and Agencies should refer to the determinations released by the Fair Work Commission that increases wage rates for their relevant award when they become available.
“Agencies need to ensure payroll processes are up-to-date and accurate and to avoid any potential for under-payments,” the APSC said.
“Agencies should also be aware that the adjustment from this decision will also flow through to employees engaged through the Supported Wage System. Awards will be updated accordingly.”
