Posted June 12, 2017
It was announced this week that the National Minimum Wage was to increase after July 1 by 3.3% to $18.29 an hour – a rise of nearly 60c per hour for workers. The new national minimum wage will be $694.90 per week, an increase of $22.20 per week.
This amount is nearly half of the proposed raise brought forward by the Australian Council of Trades Union and more than double the amount that was counter-offered by Australian Industry Group and other employer groups.
The concern has been raised that this raise in penalty rates will be ‘crippling’ for many small businesses who, while being told by the government that they are a priority and a wheel turner of the economy, feel they are the few that will feel the pinch of these changes. The fear is that many businesses will be unable to hire as many staff.
The increase in wages will begin on the first Sunday in July, the 1st, the same day as many workers receive cuts to their penalty rates in the retail, hospitality, pharmacy and fast food industries. Many see this wage increase effectively reverses the cuts made to these penalty rates.
The application of these wage changes is mandatory for all business owners in Australia from the 1st of July. If salon owners cannot update their payroll systems in time for the first available pay period after 1 July, the Fair Work Ombudsman advises that all employers will have up to one month to backdate any pay increases. However, HABA does recommend that salon owners get their payroll systems up to date as soon as possible to ensure there are no issues.
Like all organisations, Hair and Beauty Australia will receive the updated wage rates for all hair and beauty employees on the 28th of June, and will advise our members of the new wages applicable for all staff. HABA are dedicated to keeping our members informed about changes to wages, penalty rates and taxes required to be paid by salon owners, and we will do our very best to keep you abreast of the situation as it happens.
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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