Minimum Wage Increases To $640.90 Per Week From 1 July
In a recent decision of the Fair Work Commission, the minimum adult wage will increase by 3.0% to $640.90 per week or $16.87 per hour to be effective from the first full page period on or after 1 July 2014.
Further, the casual loading for award/agreement-free employees will remain at 25% and the wage provisions for award/agreement-free juniors, apprentices and trainees will be derived from the Miscellaneous Award 2010.
This increase is higher than last year as the Full Bench found that there had been “almost no growth in the real value of award rates” which has lead to a “deterioration i the relevant living standards of award-reliant workers”. In fact, “the rate of wages growth fell in 2013 to its lowest recorded level over the past decade”. Added to this, there was no evidence to suggest that the economy and business in general could not sustain such an increase. With inflation within the RBA’s target band and other economic factors stable or strong. there was no evidence to warrant a lower increase.
Superannuation Increases From 1 July
Don’t forget that superannuation guarantee contribution rate increases to 9.5% from 1 July 2014. However, employers are only expected to contribute super for an employee up to the maximum contribution rate. This will increase to $49,430 per quarter for FY 2014/15.
With superannuation guarantee contributions expected to increase by another 0.5% to 10% from 1 July 2015, and continue to increase at 0.5% each year until 2019 or 12%, businesses are encouraged to factor this into their projected labour costs when considering above minimum increases.
Contact Nicole or John from Industrial Relations Law to discuss this or any other employment matter.