Minimum wage to be $16.50 in April

A 75 cent boost to the minimum wage will see workers hourly rate rise to at least $16.50 a hour from April next year.

Workplace Relations and Safety Minister Iain Lees-Galloway announced the boost, the first of a commitment to phase in a hike to $20 by 2021.

And he confirmed that within the Government’s first 12 months, it would abolish starting-out rates and consider changes to the training wage.

‘‘In the meantime, these rates will continue to be at 80 per cent of the minimum wage, increasing to $13.20 per hour,’’ said LeesGalloway.

‘‘The Government is committed to a high-performing economy that delivers good jobs, decent work conditions and fair wages.

‘‘The increase to $16.50 per hour will benefit approximately 164,000 workers and their families, and will increase wages throughout the economy by $129 million per year,’’ he said.

Raising the minimum wage was one of the Government’s priorities for its first 100 days.

‘‘It is important that we achieve this goal in a fiscally responsible way, which is why we are signalling to employers in advance, of our plans to incrementally raise the minimum wage and spread the increases as evenly as possible each year,’’ Lees-Galloway said.

‘‘We will continue to review the minimum wage each year, and economic conditions will be taken into account when setting the new rate of the minimum wage.

‘‘This consistency gives employers and employees certainty, and minimises potential negative effects of increasing the minimum wage too sharply.

‘‘These changes are a part of this Government’s wider workplace relations policy platform, which is about backing fair pay and conditions, and ensuring those on lower incomes get to share in our economic prosperity.’’