The 2015/16 new financial year commencing this Wednesday will also bring into effect new minimum pay rates and thresholds.
According to the Fair Work Commission (FWC), from 1 July 2015, the following changes will take effect:
- Minimum wage
As foreshadowed earlier this month, the FWC’s annual wage review resulted in a 2.5% increase to the weekly minimum wage. From 1 July 2015, the minimum wage will be $656.90 per week (or $17.29 per hour). All modern award minimum rates of pay will also increase by 2.5% as of 1 July 2015. The FWC has indicated that all modern awards on its website have been updated to include the new rates of pay.
- High income threshold
An employee who is not covered by a modern award or enterprise agreement can only have an unfair dismissal claim heard by the FWC if his or her annual income does not exceed the high income threshold. For the 2014/15 financial year, this threshold amount was $133,000 per year. From 1 July 2015, the high income threshold for the 2015/16 financial year will increase to $136,700 (excluding compulsory superannuation) per year.
The compensation cap for an unfair dismissal claim (currently 26 weeks’ pay) will also increase from $66,500 to $68,350 in line with the change to the high income threshold.
Should you have any queries in relation to any of these forthcoming changes, or employment matters generally, please contact one of our lawyers in the Employment, IR and OH&S team below: