Melbourne HR Consulting Firm’s Note to SMEs – Minimum Wage Rises Coming
fibreHR notes that recently the Fair Work Commission has announced a 2.6% increase in the minimum wage in its annual review.
Richmond, Australia, July 27, 2013 --(PR.com)-- fibreHR notes that recently the Fair Work Commission has announced a 2.6% increase in the minimum wage in its annual review. Effective from July 1 2013, the national minimum wage will be $622.20 per week for employees who are not on modern awards. This is an increase of $15.80 per week, or 41c per hour.
According to the commission, the decision was based on a number of factors, including the anticipated positive outlook for the Australian economy, social and lifestyle considerations of lower paid employees, and the increase in the cost of living.
Due to the increase in employer superannuation contributions that is also to take effect in July, both the modern award and minimum wage increases are smaller than they would otherwise be. However, the Commission though did not quantify the effect.
New wage details for those employees who are covered by modern awards will also be available from July 1. As an employer, there are a number of steps you should take to prepare your business for the changes, and make sure you are in compliance with the new award increases:
1. Review your budget to prepare for the increase from July 1.
2. Make sure you receive the updated award information from Fair Work Australia so you can check that your employees are being paid the correct amounts for the relevant awards.
3. Update your payroll systems so they are ready to go for July 1.
Don’t forget there is a rise in superannuation payments effective from July. This will take the employer contribution from 9% to 9.25%.
In addition to the standard wage increases, there are a number of special provisions that have been made for employees who have disabilities, and are not on a modern award or workplace agreement. Casual employees that are covered by the national minimum wage (as opposed to an award or workplace agreement) will receive a 24% casual leave loading.
“Being up to speed with these minimum changes means that businesses will avoid fines, if in doubt seek advice,” said Lisa Spiden, Director, fibreHR.
According to the commission, the decision was based on a number of factors, including the anticipated positive outlook for the Australian economy, social and lifestyle considerations of lower paid employees, and the increase in the cost of living.
Due to the increase in employer superannuation contributions that is also to take effect in July, both the modern award and minimum wage increases are smaller than they would otherwise be. However, the Commission though did not quantify the effect.
New wage details for those employees who are covered by modern awards will also be available from July 1. As an employer, there are a number of steps you should take to prepare your business for the changes, and make sure you are in compliance with the new award increases:
1. Review your budget to prepare for the increase from July 1.
2. Make sure you receive the updated award information from Fair Work Australia so you can check that your employees are being paid the correct amounts for the relevant awards.
3. Update your payroll systems so they are ready to go for July 1.
Don’t forget there is a rise in superannuation payments effective from July. This will take the employer contribution from 9% to 9.25%.
In addition to the standard wage increases, there are a number of special provisions that have been made for employees who have disabilities, and are not on a modern award or workplace agreement. Casual employees that are covered by the national minimum wage (as opposed to an award or workplace agreement) will receive a 24% casual leave loading.
“Being up to speed with these minimum changes means that businesses will avoid fines, if in doubt seek advice,” said Lisa Spiden, Director, fibreHR.
Contact
fibreHR
Lisa Spiden
03 8413 0203
www.fibrehr.com.au
Lisa Spiden
03 8413 0203
www.fibrehr.com.au
Contact
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