The main details of the increase are:
Adult minimum wage will go up from $22.70 to $23.15 per hour.
Starting-out and training minimum wage will go up from $18.16 to $18.52 per hour.
Now is the time to check your employment records, processes and systems are current.
Here are some key factors to consider:
Maintain employee pay relativity
Maintaining employee pay relativity is crucial for fostering fairness, morale, and retention within an organization. It ensures that compensation aligns with job responsibilities and market standards, promoting equity and reducing turnover. Fair pay practices also enhance employee satisfaction, productivity, and overall organizational performance.
Minimum wage earners are receiving an automatic increase of just under 2% on April 1. If you have employees on higher wages, they may want to negotiate a pay increase to keep the relative difference.
Review and update your business budget
You should add any expected increased costs to your short and medium-term budget forecasts. This will help you plan for and manage the effect of higher wage and holiday pay liabilities.
We can review your existing budget and add it to Xero for quick actual comparison reporting. Set up a meeting with me to discuss how focusing on budgets can enhance your business and improve decision-making.
Check your payroll systems and processes
If your system is manual or computer-based, you should check and confirm the settings will be adjusted for the new rates.
We can review your existing payroll system, suggest payroll software to suit your business needs, convert and implement new software as well as train you on what to do. Or we can do it all for you. Let's schedule a time to discuss how our payroll services can help streamline your processes and save you valuable time.
Check your employee information
If any of your employees are aged 16-19, are on starting-out or training wages, now is a good time to check when they will be eligible to move onto the adult rate. Note: the minimum wage does not apply in some situations including employees under 16 years of age.
Check your employment agreements
If any employment agreements (contracts) are not current or you did not give one to your employees, now is an ideal time to discuss with them in good faith. Update the contract with any terms and conditions that were agreed to by both parties before the contracts were last reviewed. Make sure they include all the mandatory clauses a contract should have by law.
If you want to take the risk of preparing your own employment agreements, another useful tool is the employment agreement builder if your employees don't have one.
We're happy to suggest a couple of HR consultants who can assist in this area. Flick me an email if you would like their contact details.
Advise your team
If you have employees on the minimum wage, let them know about the increase they will be getting. Do the same if you give pay increases to any other staff too. Send a letter or email with a variation of their employment contract advising them of their new wage.
Are you thinking about adopting new technology or processes to boost efficiency? Do your team members have the necessary tools to accomplish their tasks effectively? Perhaps there's an app that could streamline a time-consuming manual process for you?
Let's explore ways to optimize your operations. Schedule a meeting with me here.