Fair Work Commission's Annual Wage Review - 3.5% increase

Today, Justice Iain Ross AO, President of the Fair Work Commission, announced the decision to increase the national minimum wage and all modern award minimum wages by 3.5%


01 Jun 2018

Each financial year, the Fair Work Commission’s Expert Panel for annual wage reviews conducts their review and issues a decision and national minimum wage order. The annual wage review directly affects employees employed in the national system (those covered by the Fair Work Act 2009 (the Act)). 2.3 million Australian employees have their wages set by the national minimum wage or modern awards.
 
The Expert Panel is required under Act to review minimum wages in modern awards and the national minimum wage order from the previous annual wage review.  On completion of the review which includes review of written submissions from organisations (employer associations, industry groups, unions) and individuals, analysis of research and consultation with stakeholders, a decision is made.
 
Today, Justice Iain Ross AO, President of the Fair Work Commission, announced the decision to increase the national minimum wage and all modern award minimum wages by 3.5%. This increase will come into effect from 1 July 2018. Justice Ross commented on the improved overall health of the Australian economic environment compared with last year, positive growth in employment and participation rates and an overall improvement in the labour market as some of the determining factors for the Commission’s decision.
 
For ACSA members whose employees are covered by the modern awards, you will need to ensure you apply the new pay rates from 1 July 2018, and in some instances, allowances may be increased as well.  The awards operating in Aged and Community Services typically include:
•             Aged Care Award;
•             Nurses Award;
•             Social, Community, Home Care and Disability Services Industry Award, and
•             Health Professionals and Support Services Award.
 
The ACSA Employee Relations team will, in the next few weeks, issue wages tables for the four modern awards listed above. These will reflect the 3.5% increase announced by President Ross today.
 
For those members operating under Enterprise Agreements, you will need to ensure that the rates of pay in those agreements do not fall below those prescribed by the modern awards.
 
For the summary and full decision from the Fair Work Commission, please go to:

Should you have any questions regarding the annual wage review and how it impacts your business, please do not hesitate to contact Anna-Maria Wade, Manager – Employee Relations:
 
E: annamaria.wade@acsa.asn.au
P: 02 8754 0405
M: 0410 274 872