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.
If you require advice about your particular circumstances, please contact us.