Minimum Wage Agreement 2019

Each year, a group of experts from the Fair Work Commission must review modern minimum wages and establish a national minimum wage regime for workers who are not covered by modern enterprise agreements or rewards. On May 30, 2019, the Fair Work Commission (FWC) issued its decision as part of the annual salary review for 2018-19. The decision will increase the national minimum wage and the modern minimum wage by 3% from the first full salary period on July 1, 2019. The decision concerns nearly 2.2 million, or 21 per cent of Australian workers whose wages are set by a modern premium, and 180,220 or 1.7 per cent of workers paid the minimum wage for adults. The minimum wage rate is lower than the 3.5% increase in the previous year. The FWC stated that its decision to post a lower wage increase than the previous year was due to the current economic environment, particularly the recent decline in GDP growth, lower inflation and tax transfer changes that were effective during the review period and benefited low-paid households. Many countries choose to set “technocratic” minimum wages based on pre-established formulas, linking increases to the evolution of other economic indicators or expert committees. In Malta, a tripartite committee oversees the calculation of the retail price index, which helps the government calculate the cost-of-living increases added to the minimum wage. Similarly, the Netherlands and Luxembourg apply rules that link minimum wage increases with changes in other wages. A fixed formula is used to determine the modification of the minimum wage on the basis of conventional wages and no further negotiations are under way. The National Minimum Wage Regulation 2020 [PR719660] sets the following wages for workers who are not covered by an enterprise agreement or a modern bonus. These initial results show that 2018-2019 can be considered an interesting year for those who follow the evolution of the minimum wage and how closely hired they are.

Greater political influence, notably through citizen movements, a stronger nominal increase in a context of good economic health and labour shortages, a return to setting interest rates after a new national practice in Greece and many debates on how to set minimum wages in Europe in a more predictable and transparent way , are the right part of the iceberg.