Employers reminded new minimum wage comes into effect from today
Employers are being reminded to update their payroll systems to ensure they have factored in the new minimum wage.
From today, the national minimum wage has increased by 5.2 percent or $40-a-week to $812.60.
The compulsory superannuation guarantee has also increased from today from 10 percent to 10.5 percent.
The new national minimum wage
From today, the new national minimum wage has increased from $20.33 an hour to $21.38 an hour.
The Fair Work Commission decision means 160,000 of Australia’s lowest paid workers will receive $40-a-week pay rise.
Meanwhile, 1.6 million Australians employed under a Modern Award will receive a 4.6 percent increase.
Wage rise delayed for some
Not everyone will receive the pay rise from today, however.
Due the on-going impact of the pandemic, those who work in hospitality, tourism and aviation will have to wait until 1 October 2022.
Industrial advocate Miles Heffernan advises workers to update their payroll systems.
Employers reminded to check payroll systems
Industrial advocate Miles Heffernan from Fair Work Claims said employers can get caught out inadvertently underpaying their employees at this time of year.
He is urging bosses to check their payroll systems to ensure they have factored in the new minimum wage.
“Hopefully by today, employers have already done their checking to make sure their payroll system has moved forward,” he said.
“It’s important that employers have made those checks and balances – because there’s no excuses for underpaying your staff.”
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Superannuation
Meanwhile, the compulsory superannuation guarantee has also increased from today from 10 percent to 10.5 percent.
Additionally, the $450 monthly minimum threshold that has applied before an employer has been required to make super guarantee payments has been removed.
This means employers must pay the 10.5 percent super guarantee for all employees, regardless of how little the employee has earned for the month.
The only exception is if the employee is under 18 years of age, in which case they will need to have worked for at least 30 hours in the week to be eligible.
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Fair Work Claims is a private consultancy and advocacy firm with no affiliation to any government agency, commission or tribunal.
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