Modern Award pay increases – are you compliant?

Modern Award pay increases – are you compliant?

July 17, 2018 News & Events

Award compliance may not be the most exciting topic – but the importance of ensuring that staff are paid correctly can have big consequences for a business, it’s Directors and its Stakeholders. Just ask MasterChef judge George Calombaris, who just last year was found guilty for underpaying his restaurant employees up to $2.6m! The underpayment was a direct result of poor classification of employees against the Award, resulting in employees being paid less than they should have been.

Changes in legislation, Awards and annual Award reviews can mean that employee minimum wages are changing regularly, and this is something every business needs to monitor.

Recently, The Fair Work Commission review resulted in a hefty increase to minimum wages in Modern Awards and the National adult Minimum Wage with a 3.5% increase effective 1st July 2018. Here’s a bit of a summary:

Increase for Award-covered employees

Modern award minimum weekly wages were increased by 3.5% per cent with commensurate increases in hourly rates on the basis of a 38-hour week.

Increase for Award-free employees

In addition, the decision increased the current adult national minimum wage which applies to award-free employees by 3.5% to $18.93 per hour.

How do I know if I’m compliant?

For organisations that pay at or around Award rates, now is the time to check that your pay rates are at or above the rates now contained in the relevant Modern Awards.

For organisations that pay above the minimum Award rates of pay, or pay a salary, don’t forget that these increases may still apply to you. It is necessary to review the rates of pay to ensure these do not fall under the minimum hourly rates, and don’t forget to ensure that any above Award amount is adequate enough to compensate for any penalties, loading or overtime that you may include in your employee’s salary or rate of pay.

How can Advice On-Demand help?

Worried you might be under paying your staff? Don’t risk being fined, contact Advice On-Demand on 1300 55 99 62 or email us on hrondemand@talentcodehr.com.au to discuss your situation and find out how we can help!

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