EOFY Update: Increase to the National Minimum Wage

Breaking News & Updates

Nice looking but crappy websites are PERFECT to test your staff ezylearn.com.au/2019/07/nice-… pic.twitter.com/A5Inr9pkEG

Yesterday from Steve Slisar's Twitter via WordPress.com



With the new financial year, there's a new minimum wage.
With the new financial year, there’s a new minimum wage.

While you were busy with EOFY analysis — see our tips and checklists to ensure you haven’t missed anything important — you may have missed the Fair Work Commission announcing that the minimum living wage has increased by 2.6% from 1 July this year.

The New Minimum Wage

The new minimum wage for every Australian worker is $622.20 per week or $16.37 per hour and this affects all employees; even if they’re not covered by a modern award.

You’ll need to update your payroll records in MYOB to reflect this new change (we cover changes to payroll in our MYOB course if you’re not sure) so that you don’t get caught out paying your staff at the old pay rate.

If your staff are covered by a modern award and you’re not sure what their new rate of pay will be, you can check the Fair Work Award Finder on the Fair Work Commission’s website to ensure you’re paying your employees the correct rate of pay.

Effective from 1 July

As with the increase to the superannuation guarantee, the increases to the minimum wage is effective from 1 July. However, unlike the superannuation guarantee, an employee cannot receive two separate pay rates in one pay period.

This means that for businesses that pay their employees on a fortnightly or monthly basis, where part of their employees’ pay covers a week or few weeks in June and another part of their employees’ pay covers July, the employer needs to pay the old rate for that entire period and apply the new pay rate from the next full pay period commencing after 1 July.

It’s also important to keep in mind that most allowances (such as, leading-hand and industry allowances) are based on a percentage of the base rate and since this has increased, those allowances will increase, too.

If you’re unsure what these allowances will increase to, check the modern award on the Department of Fairwork’s Award Finder or register for email updates from Fairwork about how the changes apply to each particular award.

***

For more information on the changes to the minimum wage, see the Department of Fairwork website.

-- Did you like what you read? Want to receive these posts via email when they are published? Subscribe below.

Enter your email address:

Content Marketing by 123ezy

Published by

Steve Slisar

Steve Slisar has been training people how to use computers since 1994, opened a training centre in 1999 in Dee Why and by 2005 had 3 training centres and created over 35 individual courses that include Screen videos with audio commentary, training workbooks for those who prefer to read to learn, and exercise files that are used with the tasks in the workbooks so you get practical experience in the software you are trying to learn. Now the creator of 5 of the most popular online MYOB training courses in Australia.

One thought on “EOFY Update: Increase to the National Minimum Wage”

Comments are closed.