Wage and superannuation changes for the new financial year
It’s that time of the year when the Fair Work Commission reviews minimum wage rates.
All employers who pay their employees pursuant to an Award, and in particular those who pay close to Award rate, must review the new wage figures to ensure that they are still meeting minimum wage obligations. New Award minimum wages are listed on the Fair Work website.
Click here to see all of the new pay rates on the Fair Work website. These changes apply for the first pay period after 1 July.
What are the key changes?
1. The decision increases minimum weekly wages by 3% from the previous year.
2. The new national minimum wage is $640.90 per week or $16.87 per hour. This applies to employees who aren’t covered by an Award or enterprise bargaining agreement.
3. Many allowances have also increased. All new allowance rates are now available on the Fair Work website.
4. The high income threshold and compensation limits for unfair dismissal have also increased. This means that if you have employees who earn above $133,000, it may affect Award entitlements and the entitlement to bring an unfair dismissal claim.
Don’t forget that the superannuation guarantee has also increased from 9.25% to 9.5% from 1 July. Superannuation is generally paid on top of minimum wages but not in all cases.
If you need our help with new wage rates or allowances, implications of the high income threshold or the changes to superannuation, don’t hesitate to contact us.