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12 June 2014

Important update: increased costs for employers from 1 July 2014

There are a number of changes commencing on 1 July 2014 that will increase labour costs for employers.

There are a number of changes commencing on 1 July 2014 that will increase labour costs for employers. Here is a brief snapshot.

Increased award wages

Modern Award wages will increase by 3% effective from the first full pay period on or after 1 July 2014.

Allowances in Modern Awards that are expressed as a percentage will also increase by 3% from 1 July 2014.

For those employees on the national minimum wage, their base wage will increase to $640.90 per week or $16.87 per hour.

An end to modern award transitions

The transitional arrangements under Modern Awards are due to end. This means that employers will need to pay the full Modern Award rate from 1 July 2014.

Rising superannuation contribution requirements

The minimum superannuation guarantee rate is increasing from 9.25% to 9.5% from 1 July 2014.

In very limited circumstances, employers may be able to reduce the employee’s base salary to offset the increase in the superannuation guarantee rate.

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This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.

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