The Fair Work Commission has determined to award Australian workers a 3% increase on minimum wages.

In the Annual Wage Review Decision handed down today, the Fair Work Commission has determined that from 1 July 2019:

  • The national minimum wage and modern award minimum wages are to be increased by 3%.
  • The national minimum wage will be $740.80 per week (or $19.49 per hour).  This gives workers an increase of $21.60 per week compared to the current minimum wage.
  • The casual loading for award/agreement free employees will remain at 25%.  The casual loading in modern awards (save for the Business Equipment Award 2010), will also remain at 25%.

The 3% increase is slightly down on the 3.5% increase awarded last year (from 1 July 2018).  The lower increase was attributed to “changes the economic environment (in particular the recent fall in GDP growth and the drop in inflation) and the tax-transfer changes which have taken effect in the current Review period and which have provided a benefit to low-paid households[1].  That said, the Fair Work Commission is satisfied the 3% increase “will mean an improvement in real wages for those employees who are reliant on the NMW and modern award minimum wages and an improvement in their living standards[2].

[1] Fair Work Commission Statement, Annual Wage Review 2019-19 at [10]

[2] Ibid at [11]