Higher Wage Rates, Increased Superannuation Payments and New Rules
From 1 July 2022, the National Minimum Wage (NMW) will increase by 5.2%. The $40 weekly increase takes the minimum wage to $812.60 per week, or $21.38 per hour.
The NMW applies to employees who are not covered by an award or registered agreement. ‘Award and agreement-free’ employees include senior managers and executives working in the hospitality industry.
Award Minimum Wages for most awards will increase by 4.6% or $40 per week for lower classifications on 1 July 2022.
The 1 July 2022 increase will affect the Hair and Beauty Industry Award and all other modern awards except those covering the aviation, tourism, and hospitality sectors. The increase will commence for these awards, including the Hospitality Industry (General) Award, on 1 October 2022.
Superannuation Guarantee Contributions to increase
From 1 July 2022, Superannuation Guarantee contributions payments will increase from 10% to 10.5%. The new rate is to be used on payments made on or after 1 July 2022, even if some or all of the pay period is for work done before 1 July.
The payments are legislated to increase incrementally to 12% by 2025.
Currently, employers are obliged to make Superannuation Guarantee contributions for employees earning more than $450 per calendar month (or more than $350 per month if engaged under the Hospitality Industry (General) Award)).
On 1 July 2022, employers will be required to make Superannuation Guarantee contributions for all employees, regardless of how much they earn. An exception applies for employees aged under 18 who must work more than 30 hours per week to qualify.
Reminder to employers - New rules regarding ‘Stapled Superannuation Funds’ have commenced.
On 1 November 2021, new rules regarding stapled superannuation funds came into force.
Under the rules, if a new employee does not nominate a superannuation fund, the employer must check with the ATO to determine whether the employee has an existing stapled fund. If the employee does, superannuation contributions will have to be made into that stapled fund.
Visit www.ato.gov.au/stapledsuperfund for more details.
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