As most of you will have already heard, this year’s wage review will see yet another increase in the minimum wage for the 2016/2017 financial year.
What you need to know
1. The national minimum wage will increase by 2.4% to $672.70 per week, or $17.70 per hour.
2. Minimum Award rates will also increase by 2.4% with weekly wages to be rounded to the nearest 10 cents.
It’s a risky business so make sure you get it right
The penalty for failing to comply with minimum wage obligations is up to $54,000 per contravention. For employers with a number of employees, penalties can become severe and have dire consequences on the business.
A few tips to help you get it right:
1. Review employment terms and conditions now.
2. For employees on the minimum wage, ensure payroll has been updated so that wage increases are ready to go and the 1 July 2016 increase is accounted for in the full pay cycle.
3. For Award employees, consider whether the employee’s salary is above the award rate and whether the increase can therefore be absorbed into their current salary.
4. Take into account that the increase may effect penalty rates and allowances, so these need to be factored into the calculation process.
What employers often forget, is that the wage rise effects more than simply minimum wage. Remember that it will also have an effect on such things as superannuation, payroll tax and workers compensation premiums.
If you are unsure of how the wage increase impacts on your business, or how to most effectively implement the changes, the Atkinson Vinden employment team is here to help you. Please get in touch with one of the team today.