By Aimee Chanthadavong

Employers are being reminded new pay and superannuation rates come into effect on Monday, July 1.

The Annual Wage Review decision will see minimum wages increase by 2.6 per cent from the first full pay period. This will mean full time adult retail employee at level one will see their rate increase to $683.40 per week or $17.98 per hour, while super will increase to 9.25 per cent.

This will be the second last increase as part of the modern award transitional arrangements.

More than 1.5 million workers on award wages, including adult and junior employees, trainees, apprentices, employees with a disability and workers receiving piece rates will get the increase.

Acting Fair Work Ombudsman (FWO), Michael Campbell, said its important employers are aware of the increase and how it affects their businesses.

“Employers can go to the Fair Work Ombudsman’s website now to check what the new pay rates for their staff will be,” he said.

“A common cause of many underpayments is employers not passing on annual wage increases, which can lead to large underpayments if left unchecked for a long period.”

Similarly, Australian Retailers Association (ARA) executive director Russell Zimmerman said retailers need to ensure they adhere to all their obligations as an employer, advising belonging to an industry association will help them meet their requirements.

“At the end of the day its cheap insurance to make sure you are paying correctly and that you are actually compliant with the law. You’ve got two things to worry about – the minimum wage and obviously this is the second last increase under the modern award transitional changes – and there’s also a quarter of a per cent super wage increase,” he said.

This comes off the back of a recent incident between FWO and an ARA member who was told they were using the incorrect wage rates and therefore was inadvertently underpaying its employees. However to the ARA’s finding, the retailer was advised the rates were correct and the FWO was incorrect.

However, in FWO’s defence, Zimmerman said the people working at FWO have to do deal with a variety of cases and not just retailers.

“What I’m driving here is an industry association is going to look after you specifically and that’s why your advice is 100 per cent correct,” he said.