Effective July 1, Australia’s 1.5 million minimum wage workers are set to receive an additional pay raise of $15.80 per week, a 2.6 % increase over their existing wages.
The effect of this increase will see the National Minimum Wage increase from 1 July 2013 to $622.20 per week, or $16.37 per hour.
Employers should also note that the minimum rates of pay within all Modern Awards will also increase from the first pay period on or after 1 July 2013.
What this means for employers:
- Employers who pay above National Minimum Wage are not obliged to increase their rates of pay, but should make sure that they will not actually be underpaying employees once this increase is applied;
- Employers who pay their employees at the National Minimum Wage will need to apply the increase in the first full pay period on or after 1 July 2013; and
- Employers who pay under an enterprise agreements should ensure that those base rates are at least equal to or more than the respective increased minimum rates.
The 2013-14 wage rise is small compared from the 2012 pay hike, due to the country’s below trend growth as well as the coming superannuation rise. Although less than what minimum wage workers wanted at $30 a week, it was still more than what the business groups said they can afford at only $5.80 a week. In line with the Federal Government‚Äôs submission, the increase does take into account ‚Äúchanges in living costs and the economic environment‚Äù.
For more information or assistance in assessing its impact on your business, please contact Annette at End2end Business Solutions on 02 8977 – 4002