Are you paying above the award rate? Are you sure?
Initially when we ask ‘are you paying above award rate?’ We get a definite ‘yes of course’ from our clients. However, with recent changes to minimum wage, you would be forgiven for falling dangerously close to the underpayment line. Here’s our summary of the changes and advice for moving forward.
From the 1st July, the minimum wage will increase by 3.5%, lifting the minimum hourly rate to $18.93. Are you paying your staff a flat rate? Above the award? Are you sure? As the minimum wages increase, it closes the perceived gap between what employers think they are paying to that they should be paying.
Meet Rob (our totally made up example employee):
7 Overtime hours at $38.48
His take-home pay under the award is $1022.98
Rob is only $24 p/week better off on his casual flat rate! With annual increases to the minimum wage rates, the gap will continue to close. Rob’s employer could get caught-out underpaying. This comes with a whole bag of fines and penalties.
This is a worrying realisation to many of our small business clients. The best course of action we recommend is to outsource HR. Get solid advice from people who live and breathe industrial relations. It’s a minefield out there; with the rules changing every five minutes, it’s hard to keep up.
If you’re winging it when it comes to employee pay rates and getting a bit nervous while reading this, act sooner rather than later. As the years move by and technology improves, it is becoming easier to catch people out before they even know they are doing any wrong. All in all, a relaxed happy-go-lucky attitude to this just won’t do.
Thanks to KHB it’s really easy to start heading in the right direction. We can discuss employee rates and give expert advice on how to move forward. Being proactive, will save you heaps of time, effort and money. Most importantly, it will give you complete peace of mind, which is priceless!
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