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EOFY and minimum wage increase

Minimum WageJuly 4, 2016

EOFY and minimum wage increase (Last Updated On: November 23, 2016)

With the end of financial year (EOFY) now upon us, we have a few important reminders for you.

PAYG Summaries and Superannuation

PAYG Payment Summaries are due to be issued to each of your employees by 14 July 2016. Currently, there is no increase to the superannuation guarantee levy, which will remain at 9.5%.

Minimum wages have increased

The annual minimum wage increase took effect on 1 July 2016.

For the first full pay period commencing after 1 July 2016:

  • all Modern Award rates will increase by 2.4% (with weekly wages rounded to the nearest $0.10)
  • the national minimum wage will increase by 2.4% to $17.70 per hour ($672.70 per week for a full-time employee), an increase of $0.41 per hour
  • for employers covered by the WA state system, there is a $13.00 increase in all adult award rates and the adult minimum weekly wage (to $692.90 per week). Junior, apprentice and trainee wages rates will increase proportionately
  • the high income threshold will increase to $138,900 (employees who earn below are generally entitled to protection from unfair dismissal)

The minimum rates of pay may also affect the allowance rates you pay under the Awards covering your business and employees.

Do I need to change the rates I pay?

If you pay your staff at the current Award rate, you must increase their pay to the minimum rates, but only from the first full pay period starting after 1 July 2016. You do not need to increase your rates for any pay period which started in June (even if this pay period includes days worked in July).

If you already pay above Award rates, you may not be required to increase your employees’ wages, provided the rates you currently pay are above the increased minimum. Please also review any clauses in employee contracts or an applicable enterprise agreement, stipulating a change in rates.

If your staff are covered by an enterprise agreement, you must still ensure the base rates payable under that enterprise agreement are above the increased minimum Award rates (otherwise the Award rates will apply). Often enterprise agreements will also stipulate a change of rates in line with any increase to minimum Award rates, so it is important to check your agreement carefully.

How do I know what the minimum rates are for my business?

If your business is covered by a Modern Award and you have received pay rates from Employsure in the past, you should have received an invitation to register for our client portal, MyEmploysure. Your personal portal will house the updated Pay Rate Schedule/s for the Modern Award/s applicable to your business.

If you are yet to register, please click here and follow the prompts. If you have already registered, please revisit the portal as most Pay Rate Schedules are now available.

Please note – work health and safety only clients will not have access to MyEmploysure, nor will business only covered by an Enterprise Agreement, a WA state award or if your business only has Award free employees.

If you have any questions about MyEmploysure, please email [email protected].

If you require any further advice or assistance regarding the new rates of pay or allowances, please contact us on 1300 651 415.

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