New minimum wage from 1 July 2017 & Penalty rates change

The new national minimum wage from 1 July 2017 is $694.90 per week or $18.29 per hour, an increase of 3.3% from the previous financial year.

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

Also from 1 July 2017, penalty rates in the Hospitality, Restaurant, Fast Food, Retail and Pharmacy Awards have also changed.

New Sunday penalty rates will be phased in over 2~3 years from 1 July 2017 as follows:

 Restaurant Industry Award 2010Fast Food Industry Award 2010General Retail Industry Award 2010Pharmacy Industry Award 2010***Hospital Industry (General) Award 2010
FT/PTCasual**FT/PTCasual**FT/PT*Casual**FT/PTCasual**FT/PTCasual
Before 1/7/2017150%150% (L1&L2)
175% (L3~L6)
150%175%200%200%200%225%175%175%
From 1/7/2017UnchangedUnchanged145%170%195%195%195%220%170%Unchanged
From 1/7/2018135%160%180%185%180%205%160%
From 1/7/2019125%150%165%175%165%190%150%
From 1/7/2020150%150%175%

*Applies only to ‘Level 1 employees’

** Includes casual loading

*** For hours worked between 7 am and 9 pm

All public holiday penalty rates for the above awards from 1 July 2017 will be 225% for full-time and part-time employees and 250% for casual employees.

For more information, visit Fair Work Ombudsman’s website (https://www.fairwork.gov.au/pay/penalty-rates-and-allowances/penalty-rates-changes-2017).