1 July 2018

From 1 July 2018: 

  • National Minimum Wage will increase by 3.5% from $694.90 per 38 hour week (or $18.29 per hour) to $719.20 per 38 hour week (or $18.93 per hour).

The national minimum wage applies to employees who aren’t covered by an award or agreement.

  • Pay rates in modern awards will increase by 3.5%. These increases will take effect in all awards from the first full pay period on or after 1 July 2018.

The increase in pay rate applies to employees whose employment is covered by a modern award and whose minimum pay rates are governed by that award.  Employers who pay award rates must check the relevant award to ensure that they are paying their employees according to the award. 

If you’re not sure which award applies to you, check the List of awards on the Fair Work Australia website

  • The “high income threshold” in unfair dismissal cases will increase to $145,400.

Employees who earn more than the high income threshold and who are not covered by a modern award or enterprise agreement are not able to access the unfair dismissal provisions in the Fair Work Act.

In calculating whether an employee’s earnings are above the high income thresholds, the following must be included:

  • Wages
  • Money that is paid on their behalf (e.g. superannuation top ups or salary sacrifice)
  • The agreed value of non-monetary benefits (e.g. laptop or mobile phone)
  • Compensation limit for unfair dismissal claims will increase to $72,700
  • The filing fee for dismissals, general protections and anti-bullying applications made under the Fair Work Act will increase to $71.90


What employers should do

If you pay award wages to your employees, check the applicable awards to ensure that they are being paid correctly.

To assist with this, the Fair Work Commission has prepared five facts sheets which cover:

  • Aged care industry
  • Clerical industry
  • General retail industry
  • Hair and beauty industry
  • Hospitality industry

The fact sheets relate to 5 different industries and provide examples of how the increase will be implemented in those awards. They are available from the Minimum wage increases for 2018 page on the Commission’s website.