MINIMUM PAY RATES TO INCREASE BY 3% AND HIGH INCOME THRESHOLD TO INCREASE FROM 1 JULY 2019

Date: June 28, 2019

The Fair Work Commission (FWC)’s 3% increase to the national minimum wage and minimum award rates take effect from the first full pay period after 1 July 2019.

The high income threshold will increase to $148,700 with effect from 1 July 2019.  Most relevantly, employees earning above the high income threshold (and who are not covered by a modern award or enterprise agreement) are not able to pursue a claim for unfair dismissal under the Fair Work Act 2009 (Cth) (FW Act).

ISSUE AND IMPACT

The FWC has granted a 3% increase to the national minimum wage and the minimum pay rates under modern awards.  From 1 July 2019, the weekly minimum wage will be $740.80 per week, or $19.49 per hour.  The national minimum wage will apply to any employee who is not covered by a modern award.  The FWC’s decision to increase the national minimum wage and modern award rates by 3% only impacts those employees who are paid in accordance with the national minimum wage or a modern award.

The high income threshold will increase to $148,700 with effect from 1 July 2019.   This is principally relevant to the issue of whether an employee is able to make an unfair dismissal claim and when they can, it imposes a cap of $74,350 on potential compensation.  Where an employee earns above the high income threshold (and they are not covered by an award or enterprise agreement) the employee may not pursue an unfair dismissal claim against their (previous) employer.

CONTACT

Whitehall Workplace Law

Level 14, 330 Collins Street, Melbourne, VIC 3000

T +61 (0)3 8605 4841

M +61 (0)428 041 272

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