Thinking of hiring an employee?

Black and white photo female workers


“A lot of small businesses are mum-and-pop owned businesses who don’t know about minimum wage rates.”

Do you agree with this? I was watching a TV show recently and one of the panelists was using this argument to justify why some small business owners are paying their employees less than the minimum wage. You may have come across the big story that broke late last year about some 7-Eleven franchisees in Australia paying their employees well below the minimum rate (as well as other illegal practices).

If you are thinking of hiring an employee for the first time, or if you are hiring your 2nd or 3rd employee, there are no doubt a myriad of things you need to work out first.One thing you will need to consider isAs at the date of writing, the national minimum wage in Australia is $17.29 per hour and $656.90 per 38 hour week before tax. Casual employees covered by the national minimum wage also need to receive “casual loading” – an extra amount paid to compensate for lack of benefits such as holiday pay.

These are the rates that apply to an employee not covered by a specific award or agreement. For information on specific Awards you can find all you need at the Fair Work Ombudsman website.

These rates change all the time – when working with online payroll students I was constantly updating course materials to keep up with the changes.

It’s great to check to figure out the going rate for a particular job, or to ask fellow business owners for advice, but you still need to make sure that what you are going to offer your new employee is at least the minimum rate or higher.

Are you thinking of taking on employees? Have you looked around the Fair Work Ombudsman website?

Happy bookkeeping…








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