Fair Work has announced a minimum wage increase starting 1 July 2012. Fair Work has released their annual minimum wage increase of 2.9%. At Key Business Advisors, we have been inundated with queries in relation to pay increases. As always, we are here to answer any of your questions to ensure that you are being proactive in getting the best out of your staff.
What does this mean for your business and employees?
The minimum wage increase applies to all employees, employed in Australia. The increase also applies to certain penalty rates and loadings. Depending on your industry and the classification of your employees, the increase will be applied to different base amounts. This is due to some Awards basing their penalty rates and loadings on either the minimum or standard rates or both.
What are the financial implications for your business?
So how much do you have to increase your employees’ pay when taking into account the various rates, loadings and penalties? The short answer is it could be nothing, if you’ve paid above the award. Due to the transitional rates that are in place until 2014, and the phasing in process that is applied, you may be already paying above the minimum rate so the increase can be absorbed into your employee’s rates of pay. However, the transitional phasing does not apply to all allowances and this is where it gets confusing. Particularly those allowances that were set at rates in 2010.
What is your responsibility as a business owner?
As a business owner or manager you have a legal responsibility to ensure that you are paying the correct rates of pay. Key Business Advisors can take the pain out of this task for you and give you back control to allow you to do what you do best. Running your business!
To answer any of your questions in relation to the above rate increases or to cover any issues you may have in your business, contact us today.