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ABN Latest News
1.5 million Australian employees will receive a 3% pay bump.
The Fair Work commission has recently announced an increase of 3% to the minimum wage. In real terms this increases the minimum wage from $622.20 per week to $640.90 per week.
This falls between the rise requested by the Australian Council of Trade Unions ($27) and the suggested rise from the Australian Chamber of Commerce and Industry ($8.50) and are 0.1% higher than CPI (Consumer Price Index). The changes will come into place as of July 1, 2014. This coincides with the superannuation increase from 9.25% to 9.5%.
What does this mean for business?
Businesses paying award rates will need to increase their pay scales as of July 1 to reflect the changes. It is important to think about how these changes will affect cash flow particularly for industries heavily affected by penalty rates as casual staff are more likely to be affected (46.5% of all casuals are on an award rate). You can view the 2014 wage review presented by the Fair Work Commission at http://livestreamaustralia.com.au/awrdec/
