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New Minimum Wage And Penalty Rate Cuts Take Effect This Weekend

New minimum wage and penalty rate cuts take effect this weekend

More than two million Australian workers will receive a pay rise from this Sunday, while many who work weekends will also get a pay cut.

In comparison, our federal politicians are set to receive a two per cent increase in their annual wage, which will see Prime Minister Malcolm Turnbull get paid an extra $10,000 a year.

The pay rise

From July 1, the national minimum wage will increase to $719.20 a week, or $18.93 an hour.

If you are on a modern award, you will also see an increase in your base rate of pay.

The change follows the Fair Work Commission’s recent decision to give Australian workers a 3.5 per cent pay rise.

The penalty rate cuts

But another decision by the Commission will see another round of cuts to Sunday penalty rates also come into effect from July 1.

Full-time and part-time workers in hospitality and fast food will see a 10 per cent cut in their Sunday rates, while those in retail and pharmacy will cop a 15 per cent reduction.

Workers should check pay slips

Miles Heffernan, Director of Litigation at Industrial Relations Claims, said workers should check their pay slips next week to make sure they’re receiving their correct wages.

“When changes to minimum pay or penalty rates first come into effect, it’s always a good idea to check your pay slip closely, to ensure your employer has updated their systems and correctly calculated your wage,” he said.

If you want to check exactly what you should be being paid, you can go to the Fair Work Ombudsman website and use the pay calculator.

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If you are not being paid your correct wages and entitlements, or if you are considering legal action to recover stolen wages, we can help.

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