NEW MINIMUM WAGE RATES FOR THE HAIR AND BEAUTY INDUSTRY UP 3.5%

Home / HABA Blog / NEW MINIMUM WAGE RATES FOR THE HAIR AND BEAUTY INDUSTRY UP 3.5%

Posted June 25, 2018

We told our members back at the start of June that the National Minimum Wage was to increase after July 1 and we can now confirm the pay rates for Hairdressers and Beauticians across Australia have increased.

HABA takes the time to calculate the changes to the award wage quite carefully, as rounding errors made by other associations and companies can result in significant differences in pay for salon owners. We have even seen instances where salon owners have paid over $2,000 incorrectly in a year, due to a one cent error per hour over a 38-hour week. HABA takes the time to calculate the correct wage rates so you pay absolutely no more than you have to.

Below is an example of the new wage rates.

A Senior Stylist (Hairdresser) Level 3 was previously paid $21.29 per hour or $858.23 per week (based on Full Time Employee working 31 hours Monday to Friday and 7 hours on Saturday).

Under the new wages, from the first pay period post 1^st of July, this same hairdresser will now be paid $22.04 per hour or $888.41 per week.

 

---

 

Working the same hours, previously a Diploma Qualified Beauty Therapist would be paid $23.13 per hour.

After 1^st July they will be paid $23.94 per hour or $965.02 per week.

 

---

 

* These examples are based on a Full Time Employee on a 38 hour week, the casual rates are higher of course.

 

Calculating the new wage rate is not as simple as adding 3.5% to the original rate, as there are many factors that influence this rate.

Apprentices who were signed up to their apprenticeship scheme before 1 January 2014 operate on different Award Wages than those who were signed up after, and the pay rate varies slightly for both hair and beauty employees, even though they operate under the same Award.

There have also been a number of minor changes to the allowances for staff and apprentices, which must be considered in your payslips.

HABA understand that most members don’t have the time to go and calculate new wage rates for all your staff members yourself. We have made it easy and simple for our members to work out the new wage rates for your staff members, no matter whether they are beauty apprentices, hair apprentices, qualified beauticians or qualified hairdressers. As a HABA Member, you can CLICK HERE and download the correct wage rate sheet for your staff, ensuring that you are compliant and avoiding any fines from the Fair Work Ombudsman.

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 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.

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 changes as they happen.

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.