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AUSTRALIA'S new minimum wage comes into effect tomorrow.
The hourly rate for adult workers will increase from $17.29 to $17.70 starting from the first pay period on or after July 1.
Fair Work Ombudsman Natalie James says the agency's online pay tools can assist employers to calculate their new wage rates to ensure they meet workplace obligations.
She says underpayment of wages detected by Fair Work inspectors are often traced back to employers failing to update annual wage rises.
"If left unchecked for a long period, businesses can ultimately end up with a hefty back-payment bill they were not budgeting for," James says.
"Our focus at the Fair Work Ombudsman is on educating employers about their obligations and assisting them to put processes in place to ensure they are compliant."
The Fair Work Commission's Annual Wage Review decision also impacts base rates of pay in modern awards and enterprise agreements. The 2.4 per cent increase was announced last month.
James says employers should undertake their own checks of award provisions and periodically self-audit their compliance to avoid unexpected costs down the track.
Employers and employees can refer to the Fair Work Ombudsman's Pay and Conditions Tool, which has been updated with the rate increase to determine new pay rates and check their entitlements.
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