Get set for 1 July 2014
1 July is an important date on the fair work calendar. It’s when minimum wages and allowances increase. This year it’s also when the transitional arrangements in most modern awards end.
Minimum wages are increasing
The Fair Work Commission has increased minimum wages in awards and the national minimum wage by 3%. As a result, allowances in awards will also increase. These changes take effect from the first full pay period starting on or after 1 July.
The new national minimum wage for a full-time adult will be $640.90 per week or $16.87 per hour.
It usually takes the Commission 2 – 3 weeks after they announce the annual wage review decision to update the pay rates and allowances in each modern award.
Transitional arrangements are ending
The model transitional arrangements found in most modern awards will end on 1 July. This will make it easier to calculate modern award pay rates.
If your award has the model transitional arrangements the full pay rates, casual loadings and penalties will apply. You’ll no longer need to phase from pre-modern award rates.
After 1 July it will be quicker and easier to get pay rates and penalties from PayCheck Plus.
There are 4 awards that have unique arrangements where phasing of pay rates, casual loadings and penalties may still apply. These are the:
- • Cleaning Services Award 2010
- • Hospitality Industry (General) Award 2010 (SA employers only)
- • Registered and Licensed Clubs Award 2010 (SA employers only)
- • Social, Community Home Care and Disability Services Industry Award 2010.
1 July – frequently asked questions
I pay my employees more than the minimum, do I need to check my pay rates?
You should check your employees’ minimum wages to make sure that the amount you’re paying them covers their new entitlements from 1 July. Allowances, casual loadings and penalty rates could also increase so make sure you check these as well.
I have an enterprise agreement, how does this affect me?
The base rate in an enterprise agreement can’t be any less than the relevant award rate, or if no award applies, the national minimum wage. You’ll need to:
- • check your agreement to see what it says about annual wage increases
- • check the minimum award entitlements or if there is no award, the national minimum wage, to make sure the rates in the agreement are at least the same or higher.
What should I do to get ready?
- Make sure you’ve subscribed for email updates. If you select the modern award (or awards) that your business is covered by, we’ll send you an email when your 1 July minimum wages are available. (If you don’t select an award we’ll let you know when all the tools have been updated.)
- Check that your payroll systems are ready. Your payroll systems and staff should be preparing for the changes. They need to be aware that the new minimum wages apply from the first pay period on or after 1 July 2014.
- Use our pay tools. If you’re signed up for email updates, we’ll let you know when you can find information about your employee’s new minimum wages. Once we email you, you’ll be able to check the minimum wages that will apply from 1 July.
- Apply changes from the first pay period on or after 1 July. The new minimum wages start on the first day of the first pay period on or after 1 July. So if your businesses pay week is Wednesday to Tuesday, then you’ll need to pay your employees the new minimum wages for all the hours they work from Wednesday 2 July.
- Make sure your Pay slips and records are updated.
