9 August Absorbing the annual wage increase August 9, 2018 By Reef Admin Fair Work Act 0 Minimum wage rates increased by 3.5% on 1 July 2018, but what if you're already paying an employee more than the award minimum? Can the increase be absorbed into those above award payments? The short answer is “YES”. Both the Real Estate Industry Award and the Clerks – Private Sector Award contain a provision stating that “the monetary obligations imposed on employers by this award may be absorbed into over award payments.” Further, nothing in the awards “requires an employer to maintain or increase any over award payment.” This applies when an employer is not otherwise obliged to maintain over award payments. An obligation could apply because of the terms of an employee’s employment contract (though this is not common in the real estate industry). In the case of an employee who is not covered by an award (which is also not common in our industry), any increase in an employee’s salary would usually be at the employer’s discretion, unless there is a term in the employment contract that prescribes an increase. Questions? If you have any questions about the new minimum rates of pay or over award payments, speak with a REEF Workplace Relations Advisor by calling 1300 616 170. Related Changes to annual leave provisions now in play In an important decision by the Fair Work Commission, annual leave provisions in modern awards have been varied to provide greater administrative flexibility. The changes apply from the first pay period on or after 29 July 2016. REEF President gives annual report at AGM At the recent AGM, REEF President Fred Andriessen presented his first annual report to members and shared some of REEF's big wins during 2016. REEF President gives 2017 annual report at AGM At the recent AGM, REEF President Fred Andriessen presented his annual report and provided a snapshot of just some of the activities REEF has been involved in over the course of 2017. How cashing out annual leave can impact super contributions Do you need to include the cashed out portion of annual leave in an employee's ordinary time earnings for the purpose of calculating superannuation guarantee contributions? Notice of REEF's 51st Annual General Meeting Notice is hereby given to financial members of REEF that the 51st Annual General Meeting of the organisation will be held on Thursday, 22 February 2018. Notice of 50th Annual General Meeting Notice is hereby given to financial members of REEF that the 50th Annual General Meeting of the organisation will be held on 27 April 2017. Comments are closed.