Changes to minimum wage and parental leave coming into effect
A number of changes are due to take place tomorrow (1 July) which will affect employers, including changes to the national minimum wage and paid parental leave scheme.
The national minimum wage is due to be increased by 3.4% to $589.30 per week (or $15.51 per hour), following Fair Work Australia’s annual wage review earlier this month. The increase will take effect from the first full pay period on or after 1 July.
Changes will also come in around the Federal Government’s paid parental leave scheme. Since the scheme commenced on 1 January 2011, it has provided for up to 18 weeks’ payment at the federal minimum wage, which will now be $589.30, as mentioned above.
To date, the payments to eligible employees have been made by Centrelink’s Family Assistance Office (FAO). However, as of tomorrow, employers will be – in most cases – required to administer payments through their own payroll processes.
The FAO will still determine whether an employee is eligible for PPL, and will transfer the appropriate funds to the employer’s bank account.
Finally, DonaldsonWalsh Lawyers are urging Australian businesses to review their health and safety processes and procedures ahead of harmonized health and safety laws due to commence on 1 January 2012.
Organisations are advised to ascertain whether any changes are required to ensure compliance with the new laws.