A new financial year brings some changes employers need to be aware of. See what they are, and what to do.
In the lead up to 1 July every year the Fair Work Commission conducts an annual wage review. This review has two main functions, to review the national minimum wage and the modern award minimum wages.
These steps can help you prepare for the annual wage review each year and the potential wage adjustments you may need to make.
How can you prepare?
- Keep your employees in the loop! Don’t forget open and honest communication can help build trust in a business. For employees who will have a pay increase or change., we recommend you inform them prior to the first full pay after 1 July 2024.
- Ask all your employees to check their details in the HRIS/Payroll system to ensure they are up-to-date.
- If you are using a payroll system ask the provider if they will have the pay rates automatically updated in the system or if you will need to manually update the rates yourself.
- The minimum wage rate increase will apply to those employees that are either on the minimum wage, or close to the minimum wage. This means if you are paying your employees above the minimum wage you need to look into any over award or salaried arrangements to determine whether the increase can be absorbed, or whether the increase is to be passed on. Refer to tip number 7 as your employment contract will also be relevant for determining this, because the increase can only be absorbed if it is clearly stated it can be.
- New minimum wage rates apply to the first full pay after 1 July 2024. If you have a payroll spanning over 1 July 2024 (i.e. A fortnightly payroll from 24 June 2024 – 7 July 2024 – or similar) you will need to pay the increased minimum wage from the next full pay period, as that period begins after the 1 July 2024 (e.g. 8 July 2024 – 21 July 2024). It is always best practice to ensure you check your first pay run has been processed properly and quickly address any errors that may have occurred.
- Don’t forget to update your allowances, deductions, penalties, and any other separately identifiable amount. It isn’t just the minimum hourly rate that will be updated in the Modern Awards, it will be all of the other monetary amounts that are based on that increase rate.
- Finally, don’t forget to review your existing employment contracts. If you don’t have existing employment contracts for all your employees, consider implementing them in line with the wage review.
Business Chamber Queensland has a number of employment contract templates ready for your use. Visit HERE for more information and to purchase your template.
Don’t forget about superannuation!
As at 1 July 2024, superannuation guarantee will increase from 11% to 11.5%.
For salary and wage payments made on or after 1 July 2024, the minimum superannuation guarantee contribution rate of 11.5% will need to be applied.
The superannuation guarantee rate will continue to increase in the following financial year until it reaches 12% on 1 July 2025.
How can Business Chamber Queensland help?
Not sure what this all means for you, or not sure where to start? Business Chamber Queensland can help.
Business Chamber Queensland members with HR services* as part of their membership can contact the Workplace Advisory Services team:
P: 1300 731 988 (option #3)
A consultancy fee will apply for businesses who do not have a HR membership.
For membership enquiries, please contact our membership team on 1300 731 988.
* HR services are included in Business Essentials and Business Evolve memberships
