Minimum wage increase – what it means for your business
The Fair Work Commission (FWC) has announced a 3.3% increase to the national minimum wage.
This increase applies from the first full pay period on or after 1 July 2017.
From this date, the national minimum wage will be:
$694.90 per week, or
$18.29 per hour
What do you need to do?
If we currently process your payroll – nothing for now.
As your outsourced payroll provider, we’ll take care of the changes to ensure your payroll remains compliant.
If you have employees paid at the minimum Award rate, we’ll apply the 3.3% increase, so no one falls below the required minimum. Your Payroll Specialist will work with you to make sure any increases are reflected in your first pay run after 1 July 2017.
Who does the increase apply to?
The 3.3% increase applies to employees whose pay rates are set by:
the national minimum wage, or
a modern Award
The national minimum wage applies to employees who aren’t covered by an Award or enterprise agreement.
For employees covered by an Award, minimum Award rates will also increase by 3.3%.
This change doesn’t affect employees who are already paid above the new minimum rates.
Changes to penalty rates
It’s also important to note that some penalty rates in certain hospitality and retail Awards will change from 1 July 2017.
These changes may affect:
who the new rates apply to
what the updated rates are
when the changes take effect
when pay tools are updated
If you’re unsure how these changes impact your business, we’re here to help. Please reach out to your Payroll Specialist for tailored advice.
At lucent, we offer a complete payroll outsourcing solution. An end-toend management system that not only includes payroll processing but also takes care of the entire employee on-boarding & off-boarding process. We offer compliance support and all our systems & process are conveniently located in the cloud for easy access to all parties. If you’d like to discover more about how we can streamline your payroll, click here.
