Minimum wage recap: The Fair Work Commission (FWC) approved a 2.5% increase in all Award rates for minimum wage – with a majority rising on today, July 1. For the sectors that COVID-19 impacted the most, rate rises have been delayed for the second year running. The new weekly minimum wage will be $772.60, or $20.33 an hour, up $18.80 per week. Read our original IR alert here.
Super recap: For salary and wage payments made on or after today, 1 July 2021, the minimum superannuation guarantee contribution rate of 10% will need to be applied. Read our original IR alert here.
Actions for your business
Minimum wage increase
- Timelines and pay guides: All Awards will face a minimum wage increase. For most awards, the increase is coming into effect today, from 1 July. The pay guides for these Awards are now available on our website here. However, there are other Awards which won’t come into effect until 1 September and 1 November 2021. We will publish the pay guides for these remaining Awards at a later date.
- Update payroll system: We strongly recommend you take note of the Award increase dates relevant to your business and industry. Additionally, we also recommend that you ensure your payroll system is updated with the correct rates.
- Pay your employees the correct amount of super: Determine employee eligibility here and use the super guarantee contributions calculator here.
- Update payroll and accounting systems: Update your payroll and accounting systems to incorporate the super rate increase.
- Additional super rises: Ensure you’re aware of additional superannuation related increases, including: concessional contributions cap, excess concessional contribution charge, non-concessional contributions cap and CGT cap amount.
What effect this has on Qld business
Previously, businesses have seen similarly high increases to the minimum wage however, not after an extreme global event like COVID. The minimum wage has been increased more than double the rate of inflation (1.1%) which will be hard on Queensland business. CCIQ advocated on this issue prior to the increase being set so that Queensland businesses could focus on their recovery. An increase this large may result in businesses becoming more reluctant to hire new staff or reducing current staff to keep their businesses viable in these challenging times.
Have questions about how these increases could impact your business? We’re here to help.
Call our Employer Assistance team on 1300 135 822 or email email@example.com