Superannuation & Minimum Wages Changes – what you need to know as an employer

As a business owner, it can overwhelming to run a business and keep up with the ever changing complexity employment obligations. 1 July 2021 changes are coming in relation to the minimum Superannuation Guarantee Contribution and Minimum Wages.

The last thing you need is for this date to come around and you are unsure of what impacts this has to your business and the obligations you have as a business owner to comply with these changes.


The minimum legislative Superannuation contribution by an employer is increasing. Currently the mandatory contributions from an employer to an employee is 9.5%. As of the 1st July 2021, the contributions are increasing to 10%.  This increase affects all employers.

Superannuation Guarantee is legislated to increase 0.5% annually until it reaches 12% on 1 July 2025. The increase is compulsory and cannot be avoided by employers.

It is proposed but not legislated yet that the current $450 per month minimum income threshold that employees must be paid before Superannuation is contributed to will be removed. This will mean employees will not have to earn a minimum monthly income to receive Superannuation.

The increase in Superannuation contributions is an overall business operating costs to any business. Therefore, this should be an important item that is discussed within your organization and added into your next budget.

Depending on how your employment contracts are written will depend on how the increase will impact a businesses bottom line.

It is critical that employers process the increase correctly. If an employment contract is not written inclusive of superannuation then you cannot suddenly change how you process superannuation.

In summary if your employees remuneration package is stated as:

Actions you need to do with your employees

Human Actions:

System Actions:

Minimum Wage increase

The National Minimum Wage and the rates of pay under the Modern Awards traditionally increase every 1 July of each year.

In 2020 due to the COVID-19 Pandemic the annual increase was rolled out in a staggered approach. This year, the Fair Work Commission is taking a similar approach to Award increases as a result of the continued impact on the economy .

It has been announced that there will be a 2.5% increase applied to minimum wages. The National Minimum Wage will increase effective the first full pay period on or after 1 July 2021, as follows:

The Award increases will occur in 3 stages:

Stage 1:              1st July 2021

Stage 2:              1st September

Stage 3:              1 November 2021

When the wage increase takes place, it will mean:

What you need to do is:

  1. Review the minimum increases
  1. The National Minimum Wage increase
  2. The Pay Guides per the relevant Modern Award
  1. Review your existing remuneration of each employee to determine if an increase is needed
  2. Communicate changes to employees in writing
  3. Notify payroll of the changes to remuneration that need to be processed
  4. Process the changes
  5. Update budgets

Running a business comes with continual change and increased costs. It is important as employers that you are aware of your obligations and do not miss Government legislative changes like the increase in Superannuation and Minimum Wages.

Should you need assistance navigating through these changes, please download our Fact Sheets on our or contact us at Now Actually for clarification and guidance.

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