The increase will have a multiplier effect on penalty rates, which already is a disincentive to employ more staff when those penalties apply.
The Fair Work Commission has announced a 2.5 per cent wage increase, to take effect from the first full pay period on or after 1 July 2015.
"The Accommodation sector has been beset by increases from a number of sources over recent months and this increase will only serve to further strain an already challenging business environment particularly for SMEs, and regional operators", said AAA, CEO, Richard Munro.
The increase will add $16 to the minimum national wage from July 1. Award employees in all award classifications will receive an increase of 2.5 per cent. Wages for junior employees and for trainees and apprentices will also increase.
The commission believes the increase to be a modest one, saying that against a backdrop of low inflation, they hoped the modest increase would promote greater social inclusion, assist low paid employees and increase participation.
The Association will publish the new award wage schedules and summaries in the near future and make those available to members as soon as they are prepared.