Did you know there was a pay increase in most awards on 1 July 2021?

Now is the time to check you’re paying correct minimum pay rates using the Fair Work Ombudsman Pay and Conditions Tool.

It will help you to calculate base pay rates and other entitlements, including:

  • penalties (e.g weekend, early or late shifts and public holidays)
  • overtime
  • allowances
  • leave balances
  • notice period and redundancy pay.

You must pay minimum pay rates and entitlements.

Think you might have underpaid an employee? Underpayments often happen because of a mistake or payroll error. Fixing it quickly and getting it right in future is important. Not following the law can lead to serious penalties, for you and your business.

Follow Fair Work’s step-by-step guide on how to fix an underpayment.

2.5% minimum wage increase

The Fair Work Commission recently increased the national minimum wage by 2.5%.The new national minimum wage is $772.60 per week or $20.33 per hour. It applies to anyone not covered by an award or a registered agreement.The same 2.5% increase applies to minimum award wages, but is happening in 3 stages:

  • Most awards increased from the first full pay period on or after 1 July 2021.
  • The increase for the Retail Award applies from the first full pay period on or after 1 September 2021.
  • 21 other awards increase from the first full pay period on or after 1 November 2021.

Most employees are covered by an award. If you’re not sure which award applies, use Find my award.

The increase doesn’t affect employees who already get paid more than the new minimum wage.If your employees are covered by a registered agreement, you should check it to see if this increase affects their pay.

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