Wage increase 1st July 2018

by | Jul 10, 2018 | Blog, Employers Tips

As you may be aware, the Fair Work Commission has announced that all Modern Award minimum rates increase by 3.5% applies from the first full pay period starting on or after 1 July 2018.

Award based workers

If any of your employees are covered by a Modern Award, make sure that your payroll system is ready to pass on the increased wages.

Salaried workers

If you have employees on annualised salaries, you will need to consider whether that salary is still sufficient to cover the employees’ minimum entitlements taking into account the increased national minimum wage.

wage increase

Enterprise Agreement based workers

if you have an Enterprise Agreement covering any of your employees, you must make sure that your workers are not paid less than the minimum base rate that they would be paid under an applicable Modern Award.  Accordingly, you should check the base rates under your Enterprise Agreement and compare this to the rate under the applicable Modern Award.

Individual Flexibility Agreements

All modern awards provide for employers and their employees to agree on an individual flexibility arrangement (IFA). This varies the effect of specific terms of a modern award, such as working hours, penalties and rate of pay. When the minimum award rate increases, you must check your calculations and adjust rates of pays to ensure that employees covered by an IFA are still better off overall compared to the modern award.

For more information on employees and wages or HR advice contact us here or call Signature Staff on +61 07 4050 3888

 

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