In Canberra, an Australian Taxation Office (ATO) public servant has lost a workplace compensation claim which budded from a particularly...
Minimum WageJuly 15, 2016
Employsure often receives calls from employers who have similar complaints or concerns regarding workplace relations. To assist, we will be composing one article a month over the next three months, to address these concerns and help ease some of the confusion associated with navigating workplace legislation.
The top three concerns or complaints for employers involve the minimum wage rate and associated Modern Awards, terminating employees and the process of redundancy. Due to the complexity of Australian legislation and the fact it can change quite rapidly, many employers feel left in the dark when it comes to meeting their obligations.
This article will focus on the number one complaint – understanding the minimum wage increase and Modern Awards.
What does the wage increase mean to my business, and when is it effective from?
A minimum wage is the base rate an employee is paid for their ordinary hours of work, and is determined by the industrial instrument the employee is employed under, such as a Modern Award, enterprise agreement or national minimum wage order. Employees cannot be paid an amount that is less than the national minimum rate of pay, even if agreed by the employee.
The national minimum wage and pay rates under Modern Awards are reviewed by the Fair Work Commission (FWC) each year to determine if an increase is required, based on national living standards.
In recent weeks, the FWC released their determination, increasing the national minimum wage by 2.4%. This means the minimum hourly rate a worker now receives is $17.70 an hour. This increase affects all employees who are paid the national minimum wage.
Considering this, employers must amend any employees’ pay rates who are paid the minimum wage. This revised figure must come into effect your first pay period after 1 July 2016. It does not, however, affect employers who currently pay above Award rates.
If you have any confusion regarding the minimum wage increase, or how it impacts your business, contact Employsure on 1300 651 415. Our specialist team can answer any questions regarding wage rates for your business, so call us today.