The Fair Work Commission Minimum Wage Panel has decided to lift the national minimum wage to $640.90 per week – a 3 per cent increase. This is an increase of $18.70 per week from the prior minimum wage.

The Fair Work Commission acknowledged the increase would be on top of superannuation increases up to 9.5 per cent from 1 July 2014. However, many small businesses will most likely be forced to reduce headcount or weekly hours in order to pay these ongoing labour cost increases. The increase will take effect from the first full pay period to commence on or after 1 July 2014.

Updated Modern Award Wage Bulletins are now available for employers engaging employees under the Clerks – Private Sector Award 2010, the Joinery and Building Trades Award 2010 and the Building and Construction General On-Site Award.

For more information, contact Master Builders’ Industrial Relations Department on (03) 9411 4560.

Employer Super Contributions to increase 1 July 2014

In March 2012, the Federal Government enacted the Superannuation Guarantee (SG) (Administration) Amendment Act 2012, which introduced changes to employer superannuation obligations from 1 July 2013.

From 1 July 2014, the minimum SG contribution required will rise from 9.25 to 9.5 per cent of the relevant employee’s salary or wages, up to the maximum SG contribution base. For the 2014-15 financial year, the maximum SG contribution base is $49,430 per quarter or $197,720 per year.