1.8 million Australian employees receive a 2.5% pay increase.
From 1 July 2015, the minimum wages in Australia are set to rise by $16 a week. It has been ruled that all Modern Award minimum wage rates and the National Minimum Wage will increase by 2.5%.
This means Australia’s minimum wage will go from $640.90 per week to $656.90, or $17.29 per hour.
It’s been reported that more than 1.8 million Australians who are paid the National Minimum Wage or an Award Minimum Wage will be directly affected by the ruling of the Fair Work Commission.
As an employer, what do I need to do?
It’s important, with July only a few weeks away to adjust your payroll software rates so that the increase will apply to the first full pay period on or after 1 July 2015, for any employees who are receiving the national minimum wage or are under the modern awards.
My employees are paid above the national minimum wage / modern award rates, do I need to worry about the increase?
Yes. Even if you pay your employees a rate above the minimum wage and modern award rates, you will have to check that they never fall below the new minimum wage rates.
The same goes for any employees you employ under an enterprise agreement, you will need to check that the base rates in their agreement remain at least equal to the new minimum Modern Award rates.
As an employee, what should I do?
Check with your employer as to what your current pay rates are, and ensure that when you receive your first full payslip for the period on or after 1 July 2015 any applicable increases that apply to you have been made.
Whether an employer or employee, you can contact us on 0755 99 5747 if you have any queries regarding these changes or if we can help you even out and maximise your cash flow.
CHJ FINANCIAL TEAM