The Expert Panel of the Fair Work Commission (FWC) handed down its Annual Wage Review decision last week in relation to minimum wages in awards.
The decision increases minimum wages in all modern awards by 3% and the national full-time adult minimum wage at Group Wage Level (R1) in the Vehicle Award will increase to $740.80 per week ($19.49 per hour), an increase of $21.60 per week.
The full-time tradesperson’s rate at Group Wage Level (R6) in the Award will increase from $837.40 per week ($22.04 per hour) to $862.50 per week ($22-70 per hour), an increase of $25.10 per week.
The increase will be operative from the first full pay period commencing on or after 1 July 2019.
The FWC decision also increases junior, apprenticeship and traineeship rates, as appropriately adjusted under the previously established methods in modern awards. Increases in wage related allowances in awards will also automatically be adjusted as a result of the increase.
As in previous years, employers paying above award wage rates will have the ability to absorb the increase, as appropriate. Those members paying above award rates who decide to flow- on the increase are encouraged to consider the absorption of payments under the award such as annual leave loading, allowances, and other miscellaneous payments that may apply, into any over- award wage rates.
However, it is important that members have the appropriate documentation to incorporate this into employment contracts. MTA Members interested in discussing this further can contact the MTA's Workplace Relations team by clicking here.
Members will shortly be able to access ‘interim’ updated wage schedules relating to the Vehicle Manufacturing, Repair, Services and Retail Award and the Clerks- Private Sector Award through the MTA Membership Portal after the finalisation of the rates by the FWC. It is anticipated that the FWC will issue the finalised rates within the next couple of weeks.