By Michaela Caione | Marketing Specialist HR Human Resource Services

The Fair Work Commission has released the 2019 – 2020 minimum wage decision, increasing the national minimum wage by 3 per cent. This decision made by Fair Work takes the minimum wage to $740.80 a week or $19.49 an hour giving low income earners an extra $21.60 per week.

What Does This Mean for Employers?

National Minimum Wage or Modern Award

For employers who pay their employees at the National Minimum Wage or Modern Award rates, employers will need to apply the increase in the first full pay period commencing on or after 1 July 2019.

Above Modern Award or Above National Minimum Wage

For employers who pay above National Minimum Wage or Modern Award rates are not obliged by this decision to increase their rates of pay however, must ensure their rates are greater than National Minimum Wage or Modern Award rates, once the increase is applied. It is recommended you cross reference this with a HR expert.

Enterprise Agreement

For employers who pay under an Enterprise Agreement must also check and ensure the base rates in those agreements remain at least equal to the applicable new minimum Modern Award rates.

Individual Flexibility Agreement

For employers who have Individual Flexibility Agreements in place with their employees, employers need to review those arrangements to ensure employees remain “better off overall” when compared to the applicable new minimum Modern Award rates.

Annualised Salary

Lastly, for employers who pay their employees an annualised salary, it’s important to conduct checks of those annualised salaries against the applicable new Modern Award rates and patterns of work to ensure the annual salary compensates for the increased award entitlements.

To find out more about the minimum wage increases or to confirm you are paying your employees the correct amount, contact one of our HR Experts today on 1300 4 ADVICE to conduct a wage review to ensure you are compliant with the wages and pay!

 

About The Author

Michaela Caione

Michaela is Key Business Advisors Marketing Specialist and has just celebrated 12 months working at Key Business Advisors.

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