Did you know that the minimum wage rate has been increased?
If you believe it or not, the new financial year is here once again (time really does fly!). Each year the Fair Work Commission performs a review on the national minimum wage and pay rates within all of their industry awards. If you’re not sure which award applies to you, Click here
How long have I got to make my wage rate changes?
All changes that are made by the Fair Work Commission are active for your first full pay period on or after the 1st of July 2014. If your paying your staff weekly, you will have until the 7th of July to update your award rates within payroll.
How can the wage increase affect me?
If your award rates are not updated for your first pay run prior to the 1st of July you may need to then back pay all your staff if they are paid incorrectly. Back paying your staff can result in hours of headache, problems with super payments, incorrect cost tracking and it could cause some backlash from employees.
If you have not updated your staff costing inside Deputy you will also have an incorrect forecast of upcoming roster costs. For example, a $20 minimum rate with a 3% increase is $20.60. If a staff member with this new rate works for 38 hours you will owe this staff member an extra $22.8 after calculating the difference (this is not considering early or late hours).
What are the major changes?
If your rates are setup as multipliers within Payroll, you can simply adjust the base rate with an increase of 3% as the multipliers have remained the same. If your rates are setup as hourly figures you will need to apply a 3% increase to all of your rates. If your awards have an early or late loading, you will also need to confirm the exact increase in loading as this has also been adjusted. Most of the early and late loadings have been increased by 3%.
Where can I go to find my updated award?
The Fair Work Commission have released their updated pay guides. You can find these new pay-guides here: Pay Guides
The information contained in this article is general in nature and you should consider whether the information is appropriate to your needs. Legal and other matters referred to in this article are of a general nature only and are based on Deputy's interpretation of laws existing at the time and should not be relied on in place of professional advice. Deputy is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by us concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article. Deputy disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on this information.