Tuesday, 07 June 2016 15:09

On 31st May 2016, the Fair Work Commission issued their decision for the Annual Wage Review, awarding an increase of 2.4% to all minimum rates of pay under the Federal Modern Awards. The National Minimum Wage was also increased by 2.4% (or $15.80 per week or 41 cents per hour) to a new figure of $672.70 per week, or $17.70 per hour.

The increase is to be effective from the first full pay period on or after 1st July 2016.

The Commission considered that a lesser increase than last year was justified by the fact that both inflation and wage growth in Australia this year were at lower levels.

We will be posting new MTAWA Wage Schedules reflecting the new resulting award rates of pay on the web site on 1st July 2016.

If you require your member login details, please contact Catelyn Hassett by email on: This email address is being protected from spambots. You need JavaScript enabled to view it. 

It is to be understood that this decision does not affect the West Australian State Awards, which will be affected by a decision of the WA Industrial Relations Commission, yet to issue.

If any member has any query concerning the Fair Work Commission’s decision please email or telephone the MTA WA's Industrial Relations Advisor on 9233 9800.

ANNUAL WAGE REVIEW DECISION 2016/2017

The Increase

From the first full pay period on or after 1 July 2016 the NMW will increase by 2.4% with commensurate increases in hourly rates on the basis of a 38 hour week.

National Minimum Wage

For those employees who are not covered by a modern award or enterprise agreement, the NMW will apply. From the first full pay period on or after 1 July 2016, this will be $672.70 per week or $17.70 per hour.

Minimum Wages in Modern Awards

In respect of the minimum wages in modern awards, the minimum wages in modern awards will also increase by 2.4% effective the first full pay period on or after 1 July 2016.
The increase will also apply to junior employees, apprentices and trainees.

Absorption

It is important that employers review the wage increases in accordance with their industrial instruments and contracts of employment, as some may have an obligation to pass on the increase even if they are paying above Award rates of pay.

It is important for employers to regularly review an employee’s wage and the obligations in the relevant industrial instrument or contract to ensure that they are being adequately compensated.

Enterprise Agreements

Employers who have employees employed under enterprise agreements are reminded that there is an obligation to ensure that employees are at least receiving the base rate of pay as prescribed by the applicable modern award – regardless of the rate in the Enterprise Agreement itself.

All employers with Enterprise Agreements should now compare the new increased rate in the applicable modern award against the enterprise agreement rates to ensure compliance.

WAIRC State Wage Case

The State Minimum wage increase has not yet been determined by the Western Australian Industrial Relations Commission.

Members who are sole traders, partnerships or some form of trusts will be advised by ebullettin when the announcement has been made.

Web Site

The Federal wage schedules will be placed on the MTAWA website on 1st July 2016.

Further Information

Should you require any further information, please contact Ron Ballucci on 9233 9800.

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