What does the minimum wage increase mean for your business?

More than 2 million Australians will receive a pay increase from July 2019, with the Fair Work Commission's decision to increase the minimum wage to $19.49 an hour, or $740.80 a week for full-time workers.

But, what does this mean for small business owners, especially those with tight cash flow?

The 3 per cent increase will apply to workers who have their pay set by the national minimum wage or a modern award. If your employees are paid in accordance with award rates, that means your wage costs are about to go up. 

However, rising wages don't equal reducing your team's hours or increasing your costs. 

HR and Workplace experts from Employsure, say that while the mandated wage increases may present a challenge for some small businesses to implement, it also provides an opportunity to reassess and improve the financial health of your business.

Being creative with cost savings and identifying new efficiencies can help your business manage the annual minimum wage increases.

The team at Employsure have five simple steps to help you comply with the new legislation while reducing some of your business costs. 

 

 

Minimum wage increase: What you need to know

  • The new national minimum wage will be $740.80 per week or $19.49 per hour.
  • The increase applies from the first full pay period starting on or after 1 July 2019.
  • The 3 per cent increase applies to employees that get their pay rates from the national minimum wage or a modern award.
  • The increase doesn’t affect employees who already get paid more than the new minimum wage.

For more information, visit the Fair Work Commission website.

 

 

 

Employsure

Navigating Australia’s workplace relations system can be confusing. Employsure empowers employers, providing you with specialised advice, assistance and the immediate solutions so you can focus on what you do best – running your business. They connect employers with highly trained specialists to offer a complete suite of HR services. Find out more at employsure.com.au

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