2JunPrepare for Human Resource End of Financial Year.
Posted on 2/06/2015 by Nine2Three
In early June every business starts thinking about the end of the financial year in terms of finances.
We start to think about minimising taxes, bringing forward expenses and general financial planning. What about thinking about Human Resource Management Planning at the end of Financial Year!
Every 1 July the minimum wage increases. When the minimum wage increases, all award wages are adjusted as well. The new award rates are usually published around 27th June. This can be frustrating for businesses relying on this information for the first full pay period on or after 1 July.
If you pay your staff award rates, you need to make these adjustments before the first full pay period on or after 1 July. The first full pay period means the first pay run where every day falls in the new financial year. For example if your pay day falls on July 6 but the actual dates of working are 18th June – 5th July, it is not a full pay period. You would need to have the new rates of pay for your next pay run where all dates fall in the New Financial Year.
If you pay your staff well above the award rates, you still need to be aware of the increases that come in on July 1. As the base rate of pay is used for calculations for allowances, overtime and penalty rates, this increase could affect your salary level and you may find that you are no longer higher than the award.
Most employers say that they pay well above the award rate, but often fail to keep an eye on other payments that use the base rate for calculation methods.
Even if your employees are not covered by any award or industrial instrument and you have no pay scales to follow, you need to consider at a minimum, increasing your employee’s salaries by at least the Consumer Price Index. CPI figures are published by the Australian Bureau of Statistics quarterly and if you are not increasing your employee’s salaries at least by this annually, they are in fact earning less than the year before.
If the cost of living has increased by 3% and yet their wages are the same, they are actually going backwards in terms of the worth of their remuneration.
A little planning in May and working with your local Human Resource Company can place your business in a better position to manage wage increases and keep Fair Work compliant.
Call Nine2Three HR Management Solutions for assistance with all your Human Resource issues. 1300 923 000
Posted in Building Business | I Need HR Help
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