Changes to National Minimum Wage and award minimum wages
Today is the day that the new national minimum wage and award minimum wages begin.
The key changes are:
- the National Minimum Wage has increased by $40 per week, amounting to a 5.2% increase.
- this means the National Minimum Wage is now $812.60 per week or $21.38 per hour.
- award minimum wages have changed in the following way:
- if a full time employee’s weekly wage is above $869.60 per week, they get a 4.6% increase.
- if a full time employee’s weekly wage is below $869.60 per week, they get a $40 increase.
Changes to superannuation
New superannuation changes come into effect today as well.
The key changes are:
- the eligibility threshold for the super guarantee has been removed. Now employees that earn less than $450.00 per month will be eligible to be paid superannuation.
- the superannuation guarantee rate will increase from 10% to 10.5%.
What should employers do?
Employers should:
- review employee wages and ensure they comply with the new changes.
- update accounting systems to ensure all eligible employees are being paid superannuation at the right rate.
Get in touch
If you have any questions about the implications of the new changes, or are seeking guidance on how to implement these changes into your business, please get in touch with our employment law team.
