Minimum Pay Rates Set to Rise on 1 July
- July 8, 2014
- Posted by: Jayne
- Category: Blog
3% Increase in the National Minimum Wage
With the start of a new financial year comes a new national minimum wage, along with changes to minimum wages in most modern awards and the use of model transitional arrangements also coming to an end. Employers need to make sure that their pay rates are compliant to at least the minimum entitlements.
As of 1 July 2014, the national minimum wage will be increased by 3% to $640.90 per week (or, $16.87 per hour). Remember that employees covered by a modern award or enterprise agreement are entitled to at least the minimum wage specified in their award or agreement (with most of these also increasing by 3%). Check your modern award or enterprise agreement to ensure that you will be paying the correct wages. Handy tip: make sure that you are viewing the updated version of the modern award!
Don’t forget that the guaranteed superannuation contribution rate is also increasing from 9.25% to 9.5% as of 1 July 2014. Currently, the superannuation contribution rate is legislated to increase by .5% every year through 2019, but parliament may pass changes freezing the guarantee rate at 9.5% until 30 June 2018. Watch this space!
In addition, there has also been a change to the high income threshold, with the new rate at $133,000 as of 1 July 2014. Employees earning more than this amount may not be covered by modern award entitlements and may not be able to make an unfair dismissal claim.
Fair Work have also announced that they will be updating the Fair Work Information Statement. We will announce in an upcoming newsletter when the new version is available.