1. Federal Minimum Wage, Award Wages
All award wages will increase by 3% effective first full pay period in July 14 following publication of the minimum wage panel decision in June. This means the new federal minimum wage has moved to $640.90 per 38 hour week or $16.87 per hour for an adult permanent employee. As a guide, the impact this has on higher skilled employees’ minimum wages, the trade qualified rate in the manufacturing sector moves to $746.30 per week.
Compulsory superannuation contributions increase to 9.5% from 1 July 14. The federal government intends to halt the previous government’s incremental increases to the levy for another four years however that is not yet endorsed by parliament.
3. High Income Threshold
The new high income threshold moves to $133,000 with the cap on monetary compensation in an unfair dismissal case moving to $66,500. This salary rate is used to determine eligibility for certain benefits and protections under the Fair Work Act.
4. Junior Rates in Retail
The two stage process to increase the rate of pay for 20 year olds to adult wages rates under the Retail Industry Award commences on 1 July 2014 also. The steps are from 90% to 95% effective 1 July 14 and form 95% to 100% July 2015. The federal court has rejected a Stay application on this change.
5. Sunday Penalties Restaurants
Following the decision of Fair Work Commission to reduce Sunday penalties for casuals employed at Levels One and Two under the Restaurants Award, those changes commence on 1 July 14. The union has appealed the decision.