Minimum Wage Increase Takes Effect Today: What Employers Need to Know
From 1 July 2024, a 3.75% increase in the minimum wage took effect, impacting eligible employees' pay from the first full pay period starting on or after today. This update is crucial for all employers to understand and implement correctly to ensure compliance with Fair Work Australia regulations. A reminder that if you didn't review and update your employee's rates of pay at the beginning of the financial year, you need to do it now and ensure you apply the rate to any work that has been undertaken by the employee between 1 July 2024 until the increase is applied.
New Minimum Wage Rates
The new National Minimum Wage has been set at $915.90 per week (based on a 38-hour week for a full-time employee), or $24.10 per hour. This represents an increase from the previous rates of $882.80 per week and $23.23 per hour. The minimum rate for casual employees entitled to the National Minimum Wage is now $30.13 per hour, including 25% casual loading.
Who Does This Affect?
The National Minimum Wage serves as the base rate for adult employees within the national system who are not covered by an award or registered agreement. Additionally, the 3.75% increase applies to minimum wage rates within awards from the first pay period starting on or after today.
Tools and Resources
To aid employers and employees in calculating the new pay rates, the Fair Work Ombudsman has updated the Pay Calculator. Please use these free tools, along with pay guides, or if you can’t work that out, call us so our team can help you ensure you are paying your team using the correct wage calculations.
Compliance Is Key
Employers are responsible for checking whether the wage increase applies to their employees, ensuring compliance, and avoiding potential back-pay issues or court-imposed penalties.
Additional Support
The wage increase may also apply to employees under a registered agreement, as the base pay rate in these agreements cannot be less than the base rate in the relevant award. If you are unsure of the applicable award, use the "Find my award" tool or seek assistance from our team.
Special Considerations
Award and agreement-free junior employees are paid a percentage of the National Minimum Wage based on an age-related scale. Trainees and apprentices follow pay rates based on the Miscellaneous Award 2020. There are also specific minimum wages for award and agreement-free employees with disabilities, detailed under "Employees with disability pay rates."
Navigating Changes with Confidence
Navigating wage changes can be complex, but ensuring compliance is essential for your business's smooth operation. At Connected Legal + Commercial, we provide tailored employment solutions and advice to help you manage these changes seamlessly.
Contact Us for Expert Guidance
Contact Connected Legal + Commercial for expert legal advice and targeted employment solutions for your business. We specialise in helping businesses understand and comply with Fair Work regulations, ensuring you meet your obligations while effectively supporting your workforce.
Reach out to us today to discuss how we can assist you:
Phone: 1300 804 195
Email: info@connectedlegal.com.au
Website: www.connectedlegal.com.au
Stay informed and ensure your business complies with the new minimum wage rates to foster a fair and legally sound workplace.