From July 1, as is the case every year, the minimum wage has been increased – this time by a modest 1.75%.
Traditionally, Modern Award rates have also been increased by the same percentage on the same day.
This year though, due to Covid, the Fair Work Commission has decided to introduce the increases over a 3-tier staggered basis.
Please click on this link for the full story on how your employees (if you have employees paid by a Modern Award) will be affected:
- The Health Professionals and Support Services Award increases 1/7/20.
- The Clerks – Private Sector Award, the Building and Construction General On-Site Award and the Storage Services and Wholesale Award all increase 1/11/20.
- The General Retail Industry Award increases 1/2/21.
Here are some useful numbers for you and your HR team, effective 1/7/20:
- Minimum wage up 1.75% – $753.80 per week ($942.25 casual rate) – $19.84 per hour ($24.80 casual rate); $39,203.84 pa ($49,004.80 casual rate)
- Modern Award pay rates – all increased by 1.75% but this year on a staggered basis (see above)
- Unfair dismissal threshold – $153,600 (maximum payout is $76,800) – does not include super
- Maximum salary employers have to pay super on – $228,360 ($57,090 per quarter)
- Tax-free component for eligible termination payments – $10,989 plus $5,496 for each year of completed service
- Super guarantee – still 9.5%, no change scheduled until 1/7/21 (then .5% yearly increase to 12% from 1/7/2025)
- ATO rate for use of own vehicle – 72c per kilometre
- Payroll Tax NSW – 5.45% tax kicks in on amounts above $1,000,000 pa