Employee Entitlements Increasing from July 1, 2023
As we approach the halfway mark of 2023, it’s important for employers to stay informed and proactively adapt to the changes of the ever-evolving landscape of labour laws and regulations.
From 1st July 2023, some of these changes will include:
Minimum Wage and Award Increases
One of the prominent changes occurring from the first full pay period on or after 1 July 2023 is the National Minimum Wage and Award rate increases.
All minimum Award wages will increase by 5.75 % and the National Minimum Wage hourly rate for an adult will increase to $23.23 per hour, which is an 8.6% increase from its current level. Employees in the aged care sector will also receive a 15% increase. This is the largest wage increase since the inception of the Fair Work Act.
The increases also apply to employees covered by an enterprise agreement where the base rate of pay in the enterprise agreement is lower than the corresponding base rate of pay in the applicable Modern Award.
Superannuation increasing to 11%.
On 1 July 2023 the superannuation guarantee rate will increase from 10.5% to 11%.
The superannuation guarantee rate is set to gradually increase to 12% by July 1, 2025, in accordance with the Superannuation Guarantee (Administration) Act 1992.
To avoid the super guarantee charge (SGC), you will need to update your payroll and accounting systems to ensure that all employees and eligible contractors payments are received by the employee or contractors fund on or before the quarterly super date of 28 July.
If you need HR, Industrial Relations or Workplace Health and Safety support for your business, call us on (07) 5683 0725.
