Yesterday Fairwork announced that the minimum wage was set to increase by 5.2% or $40 a week. For most employees who are employed under a Modern Award the increase will be 4.6%.
Adding to this is a .5% increase to the super contributions also from 1st July. For those of you that had employees 18 years and older that did not earn $450 a month you will be paying 10.5% super for them now too.
Whilst the Labour Government declared this as their win FairWork is supposed to be independent, like the RBA, in setting the increase.
The pay tool on Fairwork’s website will take some time t upgrade and the pay guides are not expected to be released until the 2nd of July.
The wage increase for those who are under Awards takes effect from the first full pay period after the 1st July. Super will increase to 10.5% in a slightly different way but we have this already prepared and under management. Who would have thought that they could both be managed under the same set of guidelines.
For our clients which we prepare payroll we will have the information out to you as soon as possible after it is released so that you can confirm the new rates moving forward.
Also a reminder that we are transitioning to Single Touch Payroll 2. Xero has an extension to cover all entities up to the end of the Calander year. We will focus on this once we have all things end of year, and payroll processing back on track again, so more on this in August.
If you want to read more about the minimum wage increase 5.2% follow the link to Fairwork here