Minimum Wages set to Increase


The minimum wage is set to increase on 1 July by 3.3% from $672.70 to $694.90 per week, an increase of $22.20. Here’s what to do if you own a small business.
  • Review all wages within your organisation to ensure that you are paying the correct rate.
  • If any of your employee’s wages are affected, communicate this clearly to them and ensure they understand the increase they can expect to receive.
  • If you have entered into an enterprise agreement, ensure that your current wages are not lower than the new minimum wage. If they are, you will have to update your agreement to ensure that all employees are receiving the minimum wage or higher.
  • Remember that the appropriate minimum wage rate in the relevant award will override the rate in an enterprise agreement should an inconsistency occur.
  • If any of your employees are employed under an Individual Flexibility Agreement (IFA) you must ensure that their overall rate is still above that of the minimum wage. If not, the agreement becomes unlawful. Ensure that you have checked the rates of each person under an IFA and updated them accordingly to reflect the raise.

This annual wage increase can allow employees that rely on the minimum wage to improve their relative living standards. The extra $22.20 could be the difference between paying the rent or putting food on the table. Remember to clearly communicate if the increase affects any of your staff and update your records accordingly. Keep up to date with all award rates to ensure that your employees are being appropriately paid.

For more information on the minimum wage increase contact us on (08) 9316 9896 or enquiries@processworx.com.au.

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