+613 9629 9629

+613 9629 9630
ceo@lewisholdway.com.au
Level 2, 91 William Street, Melbourne, 3000

Increases to minimum wage, superannuation and unfair dismissal cap

1 July 2017 brought a number of changes that directly affect employees and employers.

minimum wage unfair dismissal cap increaseFollowing the Fair Work Commission’s decision on 6 June 2017, both the national minimum wage rate and the modern award minimum wage rates will increase by 3.3% from the first full pay period after 1 July 2017.

Whilst the superannuation guarantee remains at 9.5%, the maximum superannuation contribution base will increase from $51,620.00 to $52,760.00 per quarter.

The high-income threshold under the Fair Work Act 2009 increased to $142,000. This means that the maximum cap for unfair dismissal remedies (being 26 weeks’ pay) is now $71,000.

From 1 July 2017

National Minimum Wage $694.90 per week, $18.29 per hour
Modern Award Minimum Rates 3.3% increase
Superannuation Guarantee 9.5% of ordinary time earnings (unchanged)
Maximum super contribution base $52,760 per quarter
High-income threshold $142,000
Maximum compensation for unfair dismissal $71,000

If you have any questions about employment law, please contact Adam Foster on (03) 9629 9629 or by email.