Employers urged to be ready for new pay rates from 1 July

Friday, 28 June 2013

Employers are reminded they must pass on to workers new pay rates which take effect from Monday, 1 July.

Acting Fair Work Ombudsman, Michael Campbell, said it’s important employers are aware of the increase and how it affects their businesses.

The Annual Wage Review decision this month increased minimum wages by 2.6 per cent from the first full pay period on, or after, 1 July.

More than 1.5 million workers on award wages, including adult and junior employees, trainees, apprentices, employees with a disability and workers receiving piece rates will get the increase.

The decision increases base rates of pay in modern awards and the National Minimum Wage for workers not covered by an award.

The National Minimum Wage increases to $622.20 per week, or $16.37 per hour, for adult workers.

“Employers can go to the Fair Work Ombudsman’s website now to check what the new pay rates for their staff will be,” Mr Campbell said.

“A common cause of many underpayments is employers not passing on annual wage increases, which can lead to large underpayments if left unchecked for a long period.”

The Fair Work Ombudsman has a range of tools and resources available on its website - www.fairwork.gov.au - that have now been updated to reflect the 1 July changes to help employers determine the new pay rates and for workers to check their entitlements.

Award Finder and PayCheck Plus can help determine the applicable modern award for an employee’s industry and occupation, as well as the applicable classification and pay rates, including base pay rates, allowances, overtime and penalty rates.

The latest edition of the Fair Work Ombudsman’s eNewsletter, which employers can read and subscribe to on the website, provides tips for employers, a check list to help businesses get ready for 1 July and details of some common misunderstandings.

An Annual Wage Review FAQs section on the website provides further detailed information on a range of important considerations.

Employers need to be aware that some annually indexed figures also increase in July. For example, the high income threshold for modern awards increases to $129,300, which may affect award application and access to unfair dismissal protections for some employees.

Employers or employees seeking further assistance can also contact the Fair Work Infoline on 13 13 94. A free interpreter service is available on 13 14 50.

Further information about the Annual Wage Review is available on the following page of the Fair Work Ombudsman’s website: 2013 Annual Wage Review.

Follow the Fair Work Ombudsman on Twitter @fairwork_gov_au external-icon.png or find us on Facebook external-icon.png.

Media inquiries:

Tom McPherson, Media & Stakeholder Relations
0439 835 855

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