Every 4 years the Fair Work Commission reviews the Modern Award system along with an annual review of the minimum wage. These changes are happening now so how do they affect your business?
- Changes To Modern Awards
In recent months, there have been several changes to the Modern Awards. Some relate to the impact of COVID-19 and include things like:
- Unpaid pandemic leave
- Annual leave at half pay
- Changes to flexible work arrangements
More recently, the Fair Work Commission released further, permanent changes to 18 Modern Awards. These include:
- The Miscellaneous Workers Award has been expanded to include categories that have not previously been covered by an Award
- Changes relating to whether casual loadings are payable on overtime
- The types of payments that are included in annual leave and public holiday loadings
- The inclusion of rates tables to help employers calculate the correct pay rate
To access the Fair Work pay calculator, visit www.fairwork.gov.au/pay To find the correct Award for each employee, visit www.fairwork.gov.au/awards-and-agreements/awards/find-my-award/
Of course, the team at End2End Business Solutions are here to provide you with the answers to your specific questions. Simply call us for help.
- Changes To Minimum Wage Rates
Given the impact COVID-19 has had on business, the Fair Work Commission carefully considered the impact any wage increase would have on employers as well and the financial hardship many employees are facing.
As a result, the national minimum wage was increased to 1.75% – slightly below Australia’s current inflation rate. In addition, the minimum wage increase will be phased in over the next 8 months.
- From July 1, Awards for frontline healthcare and social assistance workers, teachers, childcare workers and other essential workers will receive the increase.
- On November 1, Awards for various construction and manufacturing workers will receive the increase.
- The last Awards to receive the minimum wage increase are from industries like travel, tourism, entertainment, events and hospitality as these industries have been most affected by the pandemic.
The minimum hourly rate is now $19.84 per hour (previously $19.49 p/h) while the minimum weekly wage is $753.80 per week (previously $740.80 p/w).
In addition, you will need to ensure wages for the following employee categories are equal to (or higher than) the new minimum wage. The affected employee categories are:
- Salaried employees covered by an Award
- Employees paid above award rates
- Award-free employees
- Employees with enterprise agreements
- Employees covered by Individual Flexibility Agreements
Do Changes To The Awards Make Your Head Spin?
Awards, enterprise agreements and pay entitlements are complicated. So for many employers, these changes have added more complexity at a very challenging time. But the End2End team are experts on this stuff so give them a call on 02 8977 4002