The Full Bench of the Fair Work Commission cited a number of economic factors that influenced its decision as to the extent of the increase, these factors include:
- an increase in real net disposable income of 6.8%;
- an increase in labour productivity and profit growth;
- an increase in inflation (although at the end of the RBA’s target range);
- and increase in the unemployment rate to 5.8%;
- a 2.1% increase to CPI; and
- an assessment of business conditions is positive and above long-term average levels.
The National Minimum Wage will increase by $22.20 per week, from the current $672.70 ($17.70 per hour) to $694.90 per week ($18.29 per hour).
Please contact your Employment Law specialist for further information regarding how these changes will impact your business.