Minimum Wage and Superannuation Update – A Guide to Employers
Minimum Wage and Superannuation Update – A Guide to Employers
From 1 July 2022, several changes will be enforced relating to the minimum wage and superannuation rules. Read on to find out more about your new responsibilities as an employer.
Minimum Wage Increases
Minimum award wages will increase by either 4.6% or a minimum of $40 per week based on a 38-hour week for a full-time employee. These awards apply to most employees and usually relate to the specific industry in which they are employed, outlining conditions of employment and other arrangements.
Where an employee is not covered by an award, Australia’s national minimum wage applies. This hourly wage will also increase from $20.33 to $21.38, equating to an increase of approximately $40 a week based on a 38-hour week for a full-time employee.
The national minimum wage increase will apply from 1 July 2022, and similarly for award wages in most industries. This means that employers will be required to pay employees the increased wage rate from the first pay period following this date. However, wage increases for awards in the aviation, hospitality and tourism industries will not apply until 1 October 2022. The affected awards include Aircraft Cabin Crew Award, Airline Operations – Ground Staff Award, Air Pilots Award, Airport Employees Award, Airservices Australia Enterprise Award 2016, Hospitality Industry (General) Award, Registered and Licensed Clubs Award, Restaurant Industry Award, Marine Tourism and Charter Vessels Award and Alpine Resorts Award.
Changes to Superannuation Rules
From 1 July 2022, the super guarantee rate will increase from 10% to 10.5% and the $450 per month super guarantee threshold will also no longer apply. Instead, the super guarantee will expand to all eligible employees regardless of their earnings. From this date, employers will also be required to pay super to employees under the age of 18 working more than 30 hours a week regardless of their monthly pay. This means that for all wages paid after 30 June 2022, employers will be required to pay 10.5% super to all eligible employees.
Please call or click to discuss with a Macro Group Team Member if you would like further information.
The Macro Group Team
Published on 24 June 2022