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New Minimum Wage and Hospitality Penalty Rates Kick In on 1st July 2018

New Minimum Wage and Hospitality Penalty Rates Kick In on 1st July 2018

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

From this date, 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.

This follows the Fair Work Commission’s announcement of a 3.5 per cent increase to the national minimum wage earlier this month.

The Fair Work Ombudsman is the agency responsible for ensuring that workplace participants are aware of their obligations and workplace rights.

On Sunday, full-time and part-time workers in the hospitality industry will have their Sunday penalty rates cut by 10%, while causal workers will continue to receive the same rate.

In retail, full-time and part-time workers will see their Sunday penalty rates cut by 15%, while casuals will lose 10%.

For fast food workers, the penalty rates will drop 10%, and pharmacy workers face a 15% cut.

The decision to cut penalty rates will affect hundreds of thousands of workers in the retail, pharmacy, fast food and hospitality industries. It deals with workers on the following modern awards:

  • Fast Food Industry Award 2010 (the Fast Food Award) 
  • General Retail Industry Award 2010 (the Retail Award)
  • Hospitality Industry (General) Award 2010 (the Hospitality Award) 
  • Pharmacy Industry Award 2010 (the Pharmacy Award)

Full-time and part-time workers will be hit, as will casuals, although not quite as severely. 

Workers in restaurants and clubs will not be subject to cuts at this stage, but may be in the future.

Changes to Sunday penalty rates by award:

AwardCurrent rateNew rate
Hospitality - full and part time175%150%
Hospitality - casual175%175%
Fast food - full and part time150%125%
Fast food - casual175%150%
Retail - full and part time200%150%
Retail - casual225%175%

For more info visit the Fair Work website 

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