Minimum Wage Increase

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The Minimum Wage increase of 2.4% starts 1 July 2016

From the first pay period after 1 July the minimum wage increase of 2.4% will need to be included.   If you use payroll software to manage your employee pays you may need to update your system to ensure the new employee rates apply.  The Fair Work Commission is in the process of updating the awards, and these will be sent to employers when the updated pay rates are available.

This will impact all employees who are paid under most Australian Awards.

Who does the increase apply to?

The increase only applies to employees that get their pay rates from the national minimum wage, or a registered agreement or a modern award.

This rise takes the new national minimum wage to $672.70 per week or $17.70 per hour. The national minimum wage applies to employees who aren't covered by an award or agreement.

If you’re uncertain which award your employees are on you can refer to the List of awards at this link.

What you need to do

Once the Fair Work Commission has released the new rates for the award, take the time to review your team members who are affected.  Check you have them classified correctly based on their duties and update the rates in your accounting program (such as Xero, MYOB etc)

For additional information and advice, please contact your trusted advisor or accountant at PJT.

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About the author

As Partner and Director at PJT Accountants & Business Advisors, Wayne runs the Hotels Division which specialises in providing advisory services, accounting and cashflow management to the Hotels Industry. Having been a hotelier for many years himself, Wayne and his team of specialists are acutely aware of the needs of this industry and can offer real world advice to quickly improve business performance.

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