Minimum wage increase 'going to cost'

1 March 2016

Minimum wage increase 'going to cost'

The adult minimum hourly wage will rise 50 cents to $15.25 from 1 April.  Cleaning business owner Dominic Drumm, who is also the president of Building Service Contractors, said members did not expect an increase as high as 3.4 percent in today's low inflation environment. Companies would need to find a way to cover the cost of higher wages, Mr Drumm said.  "I have roughly 100 staff on my books and it's going to cost me around $25,000 extra in wages a year and it's a low margin industry.  "As a small business owner I can't absorb that. I'm going to have to talk to my customers and clients and look at options at passing that cost on."

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