What You Need to Know About Award and Penalty Rates

The Fair Work Commission (FWC) has announced a 3.3% increase to minimum wages.

minimum wage

The increase applies from the first full pay period starting on or after 1 July 2017.

The new national minimum wage will be $694.90 per week or $18.29 per hour.

What do you need to do?

If lucent processes your payroll currently – Nothing for now.

As your outsourced payroll provider, we will make these changes for you to ensure your organisation is compliant with these changes.  Should you have staff who are paid the minimum Award rate, we will apply an increase of 3.3% to ensure no one falls below the Award minimum requirements.

Your Payroll Specialist will work with you to ensure we achieve any increases by the first pay run post 1 July 2017.

Who does the increase apply to?

The 3.3% increase applies to employees that get their pay rates from:

  • the national minimum wage
  • a modern award.

The national minimum wage applies to employees who aren’t covered by an award or agreement.

For employees covered by an award, award rates will increase by 3.3%.

The increase doesn’t affect employees who are already getting paid more than the new minimum wage.

Some penalty rates are changing too

Remember, certain penalty rates in some hospitality and retail awards will also change from 1 July 2017.

Find out:

  • who the changes affect
  • what the changes are
  • when the changes start
  • when pay tools will be updated.


At lucent, we offer a complete payroll outsourcing solutionAn end to end management system that not only includes payroll processing but also takes care of the entire employee on-boarding & off-boarding process. We offer compliance support and all our systems & process are conveniently located in the cloud for easy access to all parties. If you’d like to see just how lucent advisory can streamline your payroll, click here.

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