1 April 2021 - Minimum Wage is going up!

Just in case you have been hiding under a rock (which happens to us all at times), 1 April 2021 is the day that minimum wage goes up! 

All employees (permanent, fixed term, casual) must be on an hourly rate of $20.00 per hour (before tax).  That’s $41,600 per year (before tax) for working a 40 hour week, or an increase of $2,288 per year (before tax).

 Your to dos (for the next pay run):

• Update your payroll systems, make sure the hourly rate and any overtime rates are correct. 

• Talk to your team – let the know what’s happening.

• If someone’s pay is changing, confirm the changes in a letter.

 Thinking further ahead:

• Revise your budgets

• How has this changed affected other employee’s pay?  We call this internal relativities (to be a bit technical).

 Other things to note:

• Just to confuse you further, you’ve got public holidays to sort on the 2nd and 5th April 2021.  Make sure they are paid at the right rate.

• If you don’t have employment agreements in place, now is a great time to sort that out.

• Some industries include cash benefits as part of an employee’s pay.  You’ll need to check and revise your calculations.

 If you have a question, are stuck or want to talk through the bigger questions, get in touch.