The NMW will increase from $640.90 to $656.90 per week or $16.87 to $17.29 per hour. This is an increase of 42 cents per hour or 2.5%. This is slightly less than the 3% increase made last year.
The most significant reason for a slightly lower increase in wages is because of the reduction in inflation and aggregate wages growth in comparison to those in 2014. These factors were important considerations because they have a direct bearing on living standards. Other matters taken into account by the Panel include:
These changes will come into effect on 1 July 2015.
This increase is less than that requested by union bodies but more than those in the business community.
The Australian Council of Trade Unions asked the FWC in the annual wage review to increase the federal minimum wage by $27 a week to $667.90.
The Australian Industry Group requested a 1.6% increase across the board, being an increase of $10.25. The Australian Chamber of Commerce and Industry had requested the panel to not increase the minimum wage by any more than 0.9%, being $5.70 per week.
It also means that for employees entitled to Government-funded paid parental leave, their entitlements will also increase from 1 July 2015 to $656.90 per week, less tax.