Employers warned new national minimum wage comes into effect Monday
Employers are being warned not to get caught out with changes to the national minimum wage that come into effect on Monday.
Employwise is advising businesses to review their workers’ pay rates to ensure they are not inadvertently underpaying staff, and are compliant with workplace laws.
“It’s vital that all businesses, especially small businesses, are aware of their workplace obligations when it comes to payment of wages,” Miles Heffernan from Employwise said.
“Monetary penalties for wage theft can be hundreds of thousands of dollars, and have the potential of bankrupting a business.”
The new minimum wage
From Monday, the minimum wage will increase by three per cent to $19.49 an hour, or $740.80 for a 38-hour week – up from $18.93 per hour or $719.20 per 38 hour week.
Casual employees get at least a 25 per cent loading on top of that.
Modern awards
Modern awards cover most Australian workers, and specify the conditions of their employment, including things like minimum pay rates and entitlements.
There are different awards that cover different occupations and industries.
The base rate of all awards will also increase by three per cent on Monday.
Employers should know which award applies to their workers, and the terms and conditions set out in those awards.
Penalty rates
On the same day that the minimum wage increases, there will be a cut to penalty rates for workers in hospitality, fast food, retail and pharmacy.
It will be the third cut since they were first introduced in 2017.
In February 2017, the Fair Work Commission proposed a four-stage schedule to lower Sunday penalties in retail and hospitality by 50 per cent, with the final reduction occurring on July 1 next year.
Workers who were paid double time for Sundays in 2017 will only receive time-and-a-half in July 2020.
Next week’s cut will take the Sunday loading down to 165 per cent.
So far though, thanks to annual rises in the minimum wage offsetting the penalty rate reduction, employers say they are only saving about $12 a shift.
The Fair Work Pay Calculator
For more information about modern awards, and to check how much you should be paying your staff, including penalty rates and overtime, go to the Fair Work Ombudsman’s Pay Calculator.
If you need help with a workplace issue, we can help.
Please call our specialist team at Employwise on
1800 00 9473
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