THE Federal Fair Work Commission’s 4.75 percent increase to the National Minimum Wage and minimum rates of pay across all modern awards will apply from this week.

The increase will apply from the first full pay period on or after 1 July. The National Minimum Wage applies to employees who are not covered by an award or an enterprise agreement.

The increase applies not only to base rates of pay, but also to overtime rates, penalty rates, and a range of allowances and loadings.

For award-free employees, the National Minimum Wage will increase to $26.44 per hour, or $1,004.90 per week based on a 38-hour week.

Modern award wages will also increase by 4.75pc, delivering a pay boost to around 2.7 million award‑reliant workers across the country, the Federal Government said.

These wage increases come on top of the Albanese Government’s tax cuts for every taxpayer and further improvements to Paid Parental Leave, providing additional cost‑of‑living relief for working families, the government said.

While updated award pay guides are still being finalised, employers should begin considering how the increase may affect their workforce and payroll arrangements. Businesses that currently pay above-award rates may be able to absorb the increase, provided employees continue to receive at least the applicable minimum entitlements.

Cattle industry employers are encouraged to review their employment arrangements and seek professional advice if they are unsure how the changes apply to their business. Updated award rates are expected to be released shortly.

Further information is available from the Fair Work Commission and Fair Work Ombudsman, or through your preferred employment relations adviser.

Source: Federal Government