National Minimum Wage Announcement May 2019

 

Posted on 31/05/19 in

The Fair Work Commission announced its annual minimum wage decision yesterday, raising the minimum wage rate by 3%. This increase will commence from the first full pay period starting on or after 1 July 2019.

The National Minimum Wage (NMW) is increasing

According to Justice Iain Ross, President of the Commission, “the decision directly increases the pay of 2.2m Australians, suggesting a real increase is necessary to help households still experiencing significant disadvantage”.
 
The new National Minimum Wage (NMW) will be $740.80 per week for full-time workers or $19.49 per hour for part-time employees. 
 
The annual minimum wage rise is smaller than in recent years but still boosts pay packets, given annual inflation sits at just 1.3%.

How does this affect you?

The 3% increase will be applicable to all Modern Awards. Most importantly, if you are an eligible employer of an adult apprentice undertaking an identified National Skills Shortage occupation and qualification, you may be eligible to attract the Support for Adult Australian Apprenticeships (SAAA) incentive of $4,000.00, in addition to standard incentives.  
 
Starting from 1 July 2019 the Australian Government will extend the SAAA incentive to include 21 to 24-year-old Australian Apprentices (until then the SAAA incentive only applies to those aged 25 years or over).
 
We’ve provided the table below to assist you in understanding how this may apply to you as an employer, depending on the start date of your apprentice.
 
The National Minimum Wage (NMW) is increasing
According to Justice Iain Ross, President of the Commission, “the decision directly increases the pay of 2.2m Australians, suggesting a real increase is necessary to help households still experiencing significant disadvantage”.
 
The new National Minimum Wage (NMW) will be $740.80 per week for full-time workers or $19.49 per hour for part-time employees. 
 
The annual minimum wage rise is smaller than in recent years but still boosts pay packets, given annual inflation sits at just 1.3%.
 
Start Date of Apprenticeship on or after 01/07/2019:
 
  • Australian Apprentice must be 21 years or older at the start date of the Australian Apprenticeship; and
  • Undertaking a full-time or part-time Certificate III or IV qualification that leads to an occupation listed on the NSNL at the date of commencement; and
  • Be in receipt of an actual wage by the employer, which is equal to or greater than the NMW ($740.80 per week, or $19.49 per hour for part-time apprentices).
Start Date of Apprenticeship before 01/07/2019 (regardless of date of sign up):
 
  • Australian Apprentice must be 25 years or older at the start date of the Australian Apprenticeship; and
  • Undertaking a full-time or part-time Certificate III or IV qualification that leads to an occupation listed on the NSNL at the date of commencement; and
  • Be in receipt of an actual wage by the employer, which is equal to or greater than the NMW ($719.20 per week, or $18.93 per hour for part-time apprentices).
 
For more information, call Apprenticeship Support Australia on 1300 363 831 or get in touch with your local Industry Training Consultant. 

Got a question? Call our hotline

1300 363 831
 

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We are the people to talk to about getting the maximum benefit out of employing or becoming an apprentice or trainee.

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