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By Allyson Fletcher
Human Resources News

The Fair Work Commission has just confirmed a 3.5% increase to the National Minimum Wage and award rates.ย  From 1 July, or the first pay run after the 1 July, minimum rates will need to be increased by 3.50%.

This is less than the 4.00% that the unions wanted for all employees nationally and greater than the 2.5% that business owners would have liked to see.

With what seems to be a never-ending increase to costs for all businesses this year and following an increase of 3.75% approved by the Fair Work Commission last year, as well as further increases to superannuation guarantees (with the next increase due in July this year), this undoubtedly will still have a significant impact for many businesses across the country, regardless of size.

The minimum rates wonโ€™t need to be applied to any employees who are on salary and/or higher than the minimum rates.ย  We would recommend however, for you to conduct a payroll audit for anyone who is being paid higher than the minimum rates to ensure that all your team members remain covered by all entitlements under the award.

Read more on the latest decision here.

If you would like to enquire on the costs for a payroll audit or for any further information, please contact our HR Team on 1300 4 ADVICE.

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