Following an annual wage review for 2023, the Fair Work Commission [FWC] has announced an increase of 5.75% to modern award minimum wage rates. These changes take effect from the first pay period on or after 1 July 2023.
what’s happening out there?
- Employees covered by a modern award have to be paid the minimum pay rates in their award or agreement, including penalty rates and allowances.
- Superannuation is also increasing again on the 1st of July to 11%. Please read our blog about guaranteed superannuation rates to help you understand how to manage inclusive vs exclusive super arrangements.
Make sure that you apply these changes to your budgeting and forecasting for the 2023 financial year. Costs are increasing in all aspects so where you are required to increase superannuation and wage payments, also consider your expenses and your pricing.
Is it time to review and increase your pricing as well as assess your expenditure?
how to approach these changes with your team
When having conversations with team members who are paid above the award, it’s all about understanding their pressure points, along with yours.
Having genuine conversations with mutual benefit is key. If you are unable to provide a large increase this year, or any increase other than the super, have a really transparent discussion and consider other ways that you may be able to help the employee to feel valued, rewarded and/or manage the costs of living right now.
Share future plans with them and reassure them of their job security. You could look at applying a wage increase in say, 6 months time if income continues along the right path.
we’re here to help
If you need support or guidance in relation to your financials, wages or incentives, please give us a buzz on 1300BDEPOT or email firstname.lastname@example.org and we can put you in touch with a team member who can help.
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