Paying wages in your club?
What You Need to Know from July 2023
Minimum wage rates will increase
On Friday 2 June 2023, the Fair Work Commission announced that minimum wages for employees covered by modern awards will increase by 5.75%. “Award-free” employees are subject to the national minimum wage.
The minimum wage will change as follows:
- Full-time employees rise from $21.38 per hour to $23.23 per hour.
- Casual employees will be intitled to a 25% loading on these amounts.
The new National Minimum wage will apply from the first full pay period on or after 1 July 2023.
For example:
- Pay period is Monday to Sunday, 26 June to 2 July 23. Payment date is Monday 3 July 2023. The previous wage rate will remain.
- Pay period is Monday to Sunday, 3 July to 9 July 23. Payment date is Monday 10 July 2023. The new wage rate will apply for the pay period starting 3 July.
Super Guarantee will increase
The minimum percentage of Superannuation Guarantee employers are required to pay is set to increase over time, with the next increase to 11% due on 1 July 2023.
Unlike the above example, the Superannuation Guarantee percentage applies to the OTE amount that is paid on or from 1 July, irrespective of when those amounts accrued. It is about the date of payment for SG, not when it was earned.
For example:
- Pay period is Monday to Sunday, 26 June to 2 July 23. Payment date is Monday 3 July 2023. SG is calculated at 11% on the total Ordinary Time Earnings (OTE).
REMEMBER: If you don’t pay the correct rate of SG into your employees’ super account by the quarterly due date (28 July 2023), you may have to pay the Superannuation Guarantee Charge (SGC).