Fair Work Australia has increased the minimum wage by 2.9 per cent, on the basis of a 38 hour week.
An increase, which will see a national minimum wage of $606.40 per week or $15.96 per hour, has been criticised as being unaffordable for many small businesses.
The ABC reported, Greg Evans from The Australia Chamber of Commerce and Industry estimated the increase will add an extra $2.5 billion to the yearly wage bills of small businesses.
“We saw a downturn in total hours worked during the economic downturn and I think we’ll see a slowing in the rate of increase of the restoration of those hours,” he said.
The statement from Fair Work writes:
(a) a national minimum wage of $606.40 per week or $15.96 per hour,
(b) two special national minimum wages for award/agreement free employees with disability: for employees with disability whose productivity is not affected, a minimum wage of $606.40 per week or $15.96 per hour based on a 38 hour week, and for employees whose productivity is affected, an assessment under the supported wage system, subject to a minimum payment fixed under the SWSS,
(c) wages provisions for award/agreement free junior employees based on the percentages for juniors in the Miscellaneous Award 2010 applied to the national minimum wage,
(d) the apprentice wage provisions and the NTWS in the Miscellaneous Award 2010 for award/agreement free employees to whom training arrangements apply, incorporated by reference and a provision that adult apprentices should not receive less than the national minimum wage, and
(e) a casual loading of 23 per cent for award/agreement free employees.
Download the Full PDF Here.
For more information, visit http://www.fwa.gov.au
Are you an Australian manufacturer? We’d love to hear how the increase affects your business.