Federal minimum wage, superannuation guarantee rate rise
By Stephen Keens
HR Team Manager, Key Business Advisors
With increases in the federal minimum wage and the superannuation guarantee rate coming into effect on 1 July 2013, are you clear about the adjustments you need to make as an employer?
The Fair Work Commission’s Minimum Wage Panel has approved a 2.6 per cent rise of $15.80 per week to the minimum wage, taking the weekly minimum wage to $622.20 effective 1 July 2013.
To find out what increase applies to your business, you need to check the industrial instrument relevant to you. This can get confusing as there may be different industrial instruments that you need to adhere to. The industrial instruments are:
- Modern awards (don’t forget that the transitional provisions also increase in the modern awards)
- Enterprise bargaining agreements
If you are unaware of the industrial instrument that applies to your business, please contact us immediately to ensure that you are paying your staff the correct rates. Don’t expose yourself to back payments for not adhering to changes in the minimum wage. Get on the front foot and ensure you have processes in place so that your employees are not being underpaid.
Click here to download our free template letter informing employees of the minimum wage increase – remember to change the details so they apply to your business and staff. For our clients on the enableHR System with a consultation package, your minimum award rates of pay will be outlined for you under the Awards & Wages tab in the enableHR System.
Also from the coming financial year, the superannuation guarantee rate will gradually increase over seven years to 12 per cent. For the payroll year starting 1 July 2013, the superannuation guarantee rate will increase by 0.25 percentage point, taking the minimum superannuation rate to 9.25 per cent. If your employees’ superannuation payments were at the minimum 9 per cent, from 1 July 2013 you must then adjust the payments you make to match the new rate.
Make sure you are paying your staff the correct wage and superannuation rates to avoid back payments for not adhering to the changes in legislation. If you need clarification or assistance on these changes or any HR matter, contact us on 1300 4 ADVICE.
