Accountant calculating the cash bill

The 2020 Fair Work Minimum Wage Increase and What It Means For Your Business

As of July 1st, the Fair work Ombudsman has announced that the national minimum wage has increased from $19.49 per hour to $19.84. This 1.75% increase in awards rates is to be implemented into three stages for different awards (different industries of employment).

Group One awards: Essential workers or frontline workers such as teachers, childcare workers, and healthcare professionals (1 July 2020)

Group Two awards: Building and construction, manufacturing, (1 November 2020)

Group Three awards: Arts and recreation, aviation, retail, tourism, accommodation, and food services. (1 February 2021)

For example, if your business falls under the Group One award and your employees are paid on a date after the new award – such as 4th of November for the pay period of 30th October to 4th of November, the pay would remain the same. The increase would then apply to the next payment.

Missed out on paying your employee the new rate? You can backpay your employee the difference owed by using the Pay Calculator. It’s important to backpay an employee as soon as you notice the problem and keep a record of all employee pay records.

What does this mean for small business owners?

If you’ve missed the first award date and your industry falls under that group, you’ll have to organise backpay as soon as possible. If your business is in the Group Two or Group Three category, you’ll have to keep note of the appropriate dates so you can organise the new pay increase to commence immediately after the award date.

Want to discuss award dates with a bookkeeper or are not sure what to do about backpay? Get in contact with Go Figured for a discussion about organising your financial transactions and record keeping today.

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