New rates await staff from July
Companies may need to adjust their payroll figures for the new financial year, to factor an increase in wages for some staff.
The Fair Work Commission has increased pay for award-reliant workers by 3 per cent from July 1, lifting the minimum wage to $640.90 per week or $16.87 per hour. The figure will give an extra 50 cents per hour to the hourly rates.
It may be a rough day for some, as the changes take effect at the same time as heavy vehicle registration charges rise by 1.3 per cent and the superannuation guarantee rate increases to 9.5 per cent.
FWC president Iain Ross says the changes were necessary to combat reduced living standards for award-reliant workers, improvements in labour productivity growth and the lack of cost pressures from the labour market.
The Australian Industry Group (Ai Group) says a 3 per cent increase in wages is too much, and will hurt already struggling businesses.
But the Fair Work Commissions says the increase could have been higher, as it factored in the impending increase to the rate of the superannuation guarantee when reviewing the minimum wage.
The Commission says the minimum wage is lower because the superannuation rate will increase from 9 to 9.5 per cent on July 1 and then reach 12 per cent by July 2019.
Queensland Trucking Association (QTA) CEO Peter Garske says there is no doubt that the changes will hit smaller operators, forcing some to re-evaluate their commercial arrangements to make sure they are covered.