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Information from the FWO on the Annual Wage Review & Changes to Penalty Rates

Written on the 3 July 2017

Every year, the Fair Work Commission (FWC) reviews minimum wages in Australia. The Annual Wage Review (AWR) assesses the minimum rates of pay for modern awards and the national minimum wage, and any changes come into effect from 1 July in the same year.

On 6 June, 2017, the FWC announced a 3.3 per cent increase to minimum base rates of pay, making the new national minimum wage: $694.90 per week, or $18.29 per hour. This change is applicable from the first full pay period on or after 1 July, 2017.

Penalty rates for some permanent and casual employees working on Sundays, public holidays, evenings or after midnight in the following awards have been updated as a result of a recent Fair Work Commission (FWC) decision: 

  • General Retail Industry Award 2010 [MA000004]
  • Fast Food Industry Award 2010 [MA000003]
  • Restaurant Industry Award 2010 [MA000119]
  • Pharmacy Industry Award 2010 [MA000012]
  • Hospitality Industry (General) Award 2010 [MA000009]

The changes apply from the first pay period commencing on or after 1 July 2017.

This FWC decision is currently under judicial review in the Federal Court and the FWC will monitor these proceedings and provide updates if any outcomes arising from this review affect these rates of pay.

Information on the AWR & changes to Penalty Rates

The Fair Work Ombudsman (FWO) has a key role in educating workplace participants about the changes and ensuring compliance once the new wage rates start to apply.

The FWO's online Pay And Conditions Tool (PACT) have been updated to reflect the changes and can be accessed here.

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