Is your business impacted by the federal minimum wage increase of 5.75 per cent?
More than two million employees in Australia will receive a pay rise of 5.75 per cent after the Fair Work Commission announced its annual decision for those on minimum and award wages. That increase will take effect from the first full pay period that starts on or after July 1.
The national minimum wage will increase to $882.80 per week or $23.23 per hour. Casual employees covered by the national minimum wage also get at least a 25 per cent casual loading.
This is in addition to the increase that the commission had already handed down for direct care employees working in aged care, which is effective from the first full pay period on or after June 30.
This second increase is cumulative and therefore those direct care workers in aged care will now also receive a further 5.75 per cent increase.
In assessing the impact of the minimum wage increase, employers should also be mindful that the superannuation guarantee percentage will increase as well to 11 per cent from July 1.
This will no doubt add strain to businesses that are already feeling the pinch. Conversely, it will be a small relief to employees experiencing this current cost of living crisis.
Michalle Faulkner, Managing Director, EastCoast HR, Group Suite 9, 68 Jessica Boulevard, Minyama, 5443 6022, eastcoasthr.com.au
This column is part of our Business 2 Business (B2B) series featuring industry leaders sharing their expertise. For more great articles, SUBSCRIBE to our FREE news feed, direct to your inbox daily. All you need to do is enter your name and email below.
