Posted July 1, 2019
The Fair Work Commission has handed down its Annual Wage Review Decision which comes into effect from today, 1 July 2019.
Here are the top line changes –
- Award wage rates will be increased by 3.0 per cent
- Junior, apprentice and trainee wage rates will be adjusted proportionately
- Some allowances will also be increased
These increases in wage rates are fully absorbable into over-award payments unless the employer agrees otherwise. The wage increase (in most cases) does NOT apply to those employees covered by an enterprise agreement, however, all employees covered under such an agreement must be paid a base rate of pay no less than the base rate of pay under the relevant modern award.
The other change that has occurred that is of significance for members is the Superannuation Guarantee legislation. This determines that the existing 9.5% superannuation contribution rate is to remain as-is until 30 June 2021 and will then increase by 0.5% (to a total of 10%) for all contributions made from 1 July 2021. The aim of the Superannuation Guarantee is to increase the mandatory superannuation contributions for salon owners from 9.5% to 12% by July 2025. This will have a significant impact on salon owners, and HABA will keep you informed of updates and implications as this information becomes available.
HABA has already distributed new wage rates and allowances for the Hair and Beauty Award to their members via email but members can download the revised wage guide from the Members Login area by clicking the link here.
For any further information or assistance, please contact Hair and Beauty Australia on 02 9221 9911.
To ensure that you don’t fall victim to the incorrect payment of your staff, which could result in significant fines or legal action, join HABA Payroll. By subscribing to HABA Payroll, you are guaranteed to pay your staff correctly, in line with the most up-to-date information and requirements for wages, penalty rates and taxation, every time. Join HABA Payroll by clicking the link.
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