KEEPING UP TO DATE

Award update and national wage increase

The Fair Work Commission recently announced Australia’s minimum wage will increase from 1 July 2023 to $882.80 per week, amounting to an increase of 5.75%. The new national minimum wage will be $882.80 per week or $23.23 per hour based on a 38-hour work week.

As an employer there are several actions you can take to ensure your business is paying your employees correctly, aligned with the new rates, protecting employees and your business against financial and well-being risks. These include:

1. Accurately determine the Award and grade your team are paid under. In some Awards employees move up in grades or levels based on length of service.
2. Identify any employees (including managerial roles) paid at the minimum Award rate and apply the increase effective 1 July 2023.
3. Identify any employees paid above the Award rate as you may choose to increase their hourly rate aligned with the Award increase.
4. For employees on a salary package (a fixed amount per year designed to cover the hours worked, overtime, allowances, and penalties etc.) you should check the salary package is at least the equivalent of the new minimum wage for their level including any of the outlined Award entitlements as part of the package. Once again, if this increase means your salary is not aligned, you will need to increase the package applying the better off over all test.
5. Prepare for the changes in your payroll system so it’s ready for the first payroll cycle in July. For those with automatic bank deposits set up, remember to up-date them.
6. Superannuation calculations are increasing to 11% on 1 July 2023 this will need to be applied for each employee.
7. Ensure position descriptions are up-to-date and accurately reflect the role.
8. Download a new copy of the Fair Work Information Sheet and the Fair Work Casual Information Sheet and provide to all future employees.
9. Communicate any changes in writing with your team.

If you have any questions, seeking advice on how this affects your business and/or if you require support, please contact our Senior Impact HR Consultants on 1300 474 672 or info@impacthr.com.au .