Following the completion of its annual wage review, the Fair Work Commission has announced that from 1 July 2022, Australia’s minimum wage will increase. This significant change – the highest percentage increase to the minimum wage since 2010 – means those sitting outside an award will receive an increase of 5.2% to $21.38 per hour. For those captured by an award, the minimum wage will increase by 4.6%. The rise follows through on an election promise made by the Labor Party, recognising the huge impact of high inflation on more than 2.3 million Australians who currently earn the minimum wage. Interestingly, the Reserve Bank estimates that the rise will benefit more than minimum wage workers – suggesting that around 40% of employees, or about 5,000 people, could be directly or indirectly impacted. That’s because these people will also feel encouraged to ask for a pay rise or seek new collective agreements with their employers. If you employ contractors on a minimum wage – whether inside or outside an award – you have until 1 July to adjust your payroll system so that it’s ready to pay the new rate. Even if you don’t employ people on a minimum wage, prepare now for negotiations with your workforce. Need Help with Your Payroll? Over many years, the Ayers Group has developed a unique online payroll solution that can be tailored to meet the needs of your business. Our purpose-built software puts the ease back into managing an instantly scalable workforce. With easy integration into your existing systems and streamlined management of contractor timesheets, expense claims and more, you’ll save time and the risk of error that comes with manual data entry. Plus, you’ll have one portal from where you can generate all the reports you need to check your costs and margins and make informed management decisions. If you’re not already taking advantage of the Ayers Group’s payroll solution, contact one of the experts on our team to find out how it can help your business.