National Wage Review – Are You Prepared?
Currently the Fairwork Commission is undertaking its annual National wage review to set the new minimum wages.
It is anticipated within the industry that businesses are likely at least an annual increase in the realms of 3.5%, but in light of the current cost of living a higher percentage could be determined.
This increase would affect all businesses with staff employed on modern awards.
As a business, you can prepare now, by budgeting and allowing for these increases in your financial projections.
You should also include the additional 0.5% increase in superannuation both of which will normally take affect from the 1st full pay period after July 1st, 2023.
While nothing has been finalised as yet and we may see a higher or lower amount than being talked about, now is the time to review your staffing commitments.
It can be a minefield working through Fair Work Commission decisions and how they may impact your business.
The annual wage increase decision impacts all employers and you need to ensure you apply the increase not only to adult wages, but also recognise that the increases flow on proportionately to junior employees, employees with basic piece rates of pay and quite often to allowances.
Employers with an EBA/Enterprise Agreement may also need to review the terms of their agreement to see if their rates are required to keep pace with or increase in line with their applicable award.
With a more regulated industry and the focus on under payment of wages, it is important for Employers to carefully review any changes to make sure they are complying with any changes.
Changes are expected to be announced in late June.
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