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Are you ready for the new pay rates?



Advice | Employment Legislation | Staff

By Stephanie Zillman

The Fair Work Ombudsman (FWO) has reminded employers not to conveniently forget changed pay obligations come 1 July – the minimum wage has increased by 2.6 per cent.

The increase must be included in the first full pay period on or after 1 July, affecting some 1.5 million workers. The national minimum wage will become $622.20 per week, or $16.37 per hour, for adult workers.

FWO stated that the decision increases base rates of pay in modern awards and the national minimum wage for workers not covered by an award.

Michael Campbell, Acting Fair Work Ombudsman, said it is important employers are aware of the increase and how it affects their businesses.

“Employers can go to the Fair Work Ombudsman’s website now to check what the new pay rates for their staff will be,” Campbell said. “A common cause of many underpayments is employers not passing on annual wage increases, which can lead to large underpayments if left unchecked for a long period,” he added.

The Fair Work Ombudsman has a range of tools and resources available on its website that have been updated to reflect the 1 July changes to help employers determine the new pay rates and for workers to check their entitlements.

Award Finder and PayCheck Plus can help determine the applicable modern award for an employee’s industry and occupation, as well as the applicable classification and pay rates, including base pay rates, allowances, overtime and penalty rates.

In addition, employers should note that that some annually indexed figures also increase in July. For example, the high-income threshold for modern awards increases to $129,300, which may affect award application and access to unfair dismissal protections for some employees.

Further information about the Annual Wage Review is available on the following page of the Fair Work Ombudsman’s website: 2013 Annual Wage Review.

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