Government reminds employers of other important changes starting July 1
The Fair Work Ombudsman on Friday reiterated to employers that the national minimum wage hike will increase to $23.23 per hour or $882.80 per week starting July 1.
Workplaces should ensure that employees are paid at least the relevant minimum wage in line with the Fair Work Commission's decision early this month, according to Fair Work Ombudsman (FWO) Sandra Parker.
Parker said the FWO updated its free Pay Calculator to help employers and employees calculate their new pay rates.
"We urge all businesses to use our Pay Calculator to check the lawful minimum rates they need to pay their staff, or to contact us directly for free assistance," Parker said in a media release.
For employees who are unsure which award applies to them, Parker said their “Find my award” tool could be helpful.
"If employers and employees have any questions about pay rates, they can contact the Fair Work Ombudsman for free advice and assistance," she added.
National minimum wage hike
The Fair Work Commission in June raised the national minimum wage by 5.75%, operative from the first full pay period on or after July 1.
"The National Minimum Wage will be increased to $882.80 per week or $23.23 per hour, reflecting the FWC's decision to align the National Minimum Wage to the C13 classification level found in modern awards," Ai Group, national employer association, said in a media release.
"It was previously aligned to the lower C14 level. Junior, apprentice, and trainee wage rates will be adjusted proportionately."
Casual employees entitled to the national minimum wage will should also receive a minimum of $29.04 per hour, according to the FWO. This includes their 25% casual loading.
Other July 1 changes
Meanwhile, the Ai Group also reminded employers about other "significant changes" that will take effect starting July. They include:
- The superannuation guarantee percentage increase to 11%
- The increase of eligibility age for Age Pension to 67 years.
- The higher limit on access to the 'small claims' jurisdiction for recovery of underpayments from $20,000 to $100,000, enabling a much greater volume of claims to potentially be pursued through this jurisdiction
The paid parental leave extension will also be extended from 18 weeks to 20 weeks, according to the Ai Group.
"The two weeks' pay added to the 18 weeks is to be taken on a 'use it or lose it' basis by each claimant. The provision of separate dad and partner pay will be abolished. Eligibility to the government-funded paid parental leave will also be expanded," the association said.
The government will also reintroduce the work restrictions for student visa holders starting July 1, it added.
"A new work hours cap of 48 hours a fortnight will apply from 1 July, increased from the previous cap of 40 hours a fortnight. Employers and students will need to comply with work restriction caps," the association said.
