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This 22/23 Financial Year, if you’re a business owner you need to understand the national minimum wage increase.
If you’re unsure how the change will affect you, continue reading as we break down the minimum wage increase and how our team can assist by reviewing your payroll.
What is the new national minimum wage and why is it important?
As of 1 July 2022, the Fair Work Commission has brought on an increase to the national minimum wage.
Each year the Fair Work Commission reviews the national minimum wage. All employees working in Australia are entitled to the national minimum wage. It is the minimum pay rate an employee can be paid for the work that they are undertaking.
The Fair Work Commission raised the minimum wage by 5.2 per cent, updating it to $21.38 an hour. This will affect small business owners who may need to update their wages for employees to align with the new minimum wage.
Other award wages, including apprentice and junior (under 21 years) that are based on adult minimum wages, will also see an increase.
This means minimum award wages:
The Australian Chamber of Commerce and Industry (ACCI) released a media release stating the wage increase would have a significant impact on small business owners.
According to the ACCI, the wage increase will cost Australian businesses $7.9 billion a year, particularly the industries that have been hurt the most by COVID-19 restrictions.
The wage rise is compulsory and a non-negotiable for those who are paid the national minimum wage.
Employee entitlements, like allowances and annual leave will be changed, meaning you will have to reflect this in your payroll software when you complete a pay run.
Keeping up to date of all the changes is a wise idea to reduce the pressure of an unnecessary financial burden on your business.
We can help business owners navigate this transition. Our accounting team is offering a payroll review to all our clients. Our payroll review will help advise businesses on what these changes will cost.
This service will also help businesses adjust to the wage increases which they may not have had the time to do themselves.
The process involves looking at all the employees in the business to see if they are:
We will also look at the overarching cost of this for your business.
If you need help navigating your payroll following the new minimum wage increase, get in touch with us!
The Valorium Advisors business philosophy revolves around more than just the numbers. We look at the bigger picture and understand that starts with you.
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