The national minimum wage (NMW) has been increased by 3.5%, or $24.30 per week, by the Fair Work Commission’s Expert Panel for annual wage reviews (the Expert Panel).
The NMW will be $719.20 per week, or $18.93 per hour, based on a 38-hour week for a full-time employee.
The Expert Panel concluded that:
“The level of increase we have decided upon will not lead to undue inflationary pressure and is highly unlikely to have any measurable negative impact on employment. However, such an increase will mean an improvement in the real wages for those employees who are reliant on the NMW and modern award minimum wages and, absent any negative tax transfer effects, an improvement in their living standards. We acknowledge that the compounding effect of increases over time may have a cumulative effect which is not apparent in the short term. We will continue to closely monitor this in future reviews.”
The Expert Panel also increased modern award minimum wages by 3.5%. Updated modern awards reflecting these increases will be released by the Fair Work Commission prior to commencement on 1 July 2018.