Earlier this week the Fair Work Commission handed down its annual wage review decision increasing the minimum wage for award-reliant employees by 3.3%.

The decision means that effective from 1 July 2017 minimum rates of pay under modern awards will increase by 3.3%. This equates to an increase of 59 cents per hour or $22.20 a week.

The 2016/2017 award rate increase is almost 1% higher than the increase granted by the Fair Work Commission last year, which was a more modest 2.4%.

Employers with award-covered employees should ensure that their minimum rates are at least equal to the new rates from 1 July 2017 to avoid potential underpayment claims.