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2017 Annual Wage Review and Penalty Rate Decrease

Modern Award classification and compliance guide for employers

The Commission has this week handed down two separate decisions relating to the Annual Wage Review for all Awards, and the Penalty Rate Reductions for some Awards – a summary is provided below.

 

ANNUAL WAGE REVIEW 2017

The 2017 Annual Wage Review Decision will result in all wage rates of pay contained in every Modern Award increasing by 3.3%, effective from the first full pay period on or after Saturday 1 July 2017.  This wage increase can be absorbed into any existing over award payments (check the absorption clause in your Modern Awards – usually this is in clause 2.2 or there about).

 

SUNDAY PENALTY RATES

Following on from the Commission’s decision on 23 February 2017, Sunday penalty rates for the Awards below will be reduced as follows:

Hospitality Industry (General) Award 2010

  • Full-time and part-time employees only – reduced to 170% on 1 July 2017 (and a further 10% on 1 July each year until it reaches 150% on 1 July 2019) (no change for casual employees)

Fast Food Industry Award 2010

  • Level 1 Employees only, Full-time and part-time employees – reduced to 145% on 1 July 2017 (and a further 10% on 1 July each year until it reaches 125% on 1 July 2019);
  • Casual employees – reduced to 170% on 1 July 2017 (and a further 10% on 1 July each year until it reaches 150% on 1 July 2019)

General Retail Industry Award 2010

  • Full-time and part-time employees – reduced to 195% on 1 July 2017 (and a further 15% on 1 July each year until it reaches 150% on 1 July 2020);
  • Casual employees – reduced to 195% on 1 July 2017 (and a further 10% on 1 July each year until it reaches 175% on 1 July 2020)

Pharmacy Industry Award 2010

  • Full-time and part-time employees (7:00am to 9:00pm only) – reduced to 195% on 1 July 2017 (and a further 15% on 1 July each year until it reaches 150% on 1 July 2020);
  • Casual employees – reduced to 220% on 1 July 2017 (and a further 15% on 1 July each year until it reaches 175% on 1 July 2020)
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