Depending on whether your employees have an all-inclusive salary contract or not the superannuation increase of .50% may be inclusive of an employees current salary or it may be additional to their current salary.
If an employee has an all-inclusive salary contract the current salary may be reduced to accommodate the increase in superannuation. However, employers are being encouraged to reconfigure salaries and wages to ensure employees can keep the base rate the same and receive the additional superannuation contribution.
Employers should review their contracts and agreements before July 1st 2021 to decide which method applies. Don’t forget to inform your employees beforehand (preferably by issuing a signed written communication to the employee) about your decision and double check your payroll system reflects that decision from July 1st 2021 onwards.
If you require assistance with interpreting contracts, agreements or an Industry Award give us a call we can help 0405 146 761.