New minimum wage and hospitality penalty rates kick in 1 July

26 June, 2018 by
Annabelle Cloros

From 1 July 2018, Sunday penalty rates in the Hospitality award are changing following a Fair Work Commission decision last year.

Minimum wage increases will also be implemented, with the Fair Work Ombudsman calling on businesses to ensure they are aware of their responsibilities.

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From 1 July, the national minimum wage will increase to $719.20 per week, or $18.93 per hour. The base rates of pay in modern awards will also increase.

“Employers must take action to pass on the wage increase to their employees to make sure workers are receiving their full lawful entitlements,” says Ombudsman Natalie James.

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“Too often we find that the underpayment of wages can be traced back to a failure by employers to apply annual wage rises. All employers have a responsibility to check the law and make sure they remain compliant to avoid unexpected costs later down the track.”

In regards to penalty rates, full-time and part-time employees will now be paid a penalty rate of 160 per cent of their base pay rate for Sunday work from 1 July 2018.

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From 1 July 2019, the penalty rate will drop to 150 per cent, completing the three-year penalty rate changes.

There will be no changes to Sunday penalty rates for workers covered by the Restaurant Award.

“These rates are not the same for public holidays, for which full-time and part-time employees are entitled to a rate of 225 per cent of their base salary,” says a Fair Work Ombudsman spokesperson.