New minimum rates of pay in July

Increases to minimum rates of pay have been introduced by Fair Work Australia, the regulatory body responsible for managing the National Minimum Wage.

Minimum weekly wages as contained in modern awards are increased by 3.4 per cent. Hourly rates of pay will be adjusted to reflect the percentage increase to weekly rates.

The increases flow on at the appropriate percentage to junior employees, employees to whom training arrangements apply, employees with disabilities and basic piece rates of pay.

The increases will apply from the first pay period commencing on or after July 1, 2011, as opposed to a singular effective date.

In effect, the national minimum wage order will be A$589.30 per week or A$15.51 per hour;

The Fair Work Australia announcement applies to all employers in the Northern Territory

Meanwhile, the Australian Chamber of Commerce and Industry has produced a fascinating document containing  the results of a survey on how employers dealt with the A$26-a-week minimum wage increase granted by Fair Work Australia in last year's review.

The national survey, which was conducted online, involved 923 small to medium Australian businesses, most of them employing fewer than a hundred staff. It shows that after last year’s rise:

65.9 per cent of employers reported decreased profitability;

54.6 per cent reported a reduction in cash flow;

39.1 per cent reported that they had reduced the total number of working hours offered to employees; and

24.2 per cent reported that they had cut the number of casual employees, while 18.6 per cent had cut back on full-time employees.

A key finding was that 44.9 per cent of employers reported a direct impact on new hiring intentions.

And 42.7 per cent of businesses owners said they were working more hours

Prepared by Bob Woodward & Associates: offering you business consultancy, accounting, payroll administration and ancillary services in Darwin; The Northern Territory, Australia
http://www.woodwards.co/