This guide will detail what is involved with wage increases in Tanda ahead of 1 July 2024 and answer some frequently asked questions.
Contents:
What is the wage increase for 2024?
On Monday 3 June 2024, the Fair Work Commission (FWC) handed down the Annual Wage Review 2023–24 decision.
The FWC has announced a 3.75% increase to all modern award minimum wages.
When do the new rates apply?
For 2024/25 minimum wage increases, the effective date will be the first full pay period that commences on or after 1 July 2024.
Tanda will automatically update all Managed Award Template base rates and allowances to reflect the increase. The increase will apply from the start of your first full pay period after the effective date.
What this means is that if you have a weekly pay period that commences on a Tuesday, this year the wage increase will be effective for you on Tuesday 2 July 2024 as this is the beginning of your next full pay period after the increase.
For further information on effective dates, see the 2023 - 2024 Annual Wage Review article from the Fair Work Ombudsman.
Which Tanda Managed Award Templates are affected by the 2024 wage increases?
All Tanda Managed Award Templates will receive the 3.75% increase.
How do wage increases work in Tanda?
For employees covered under a Tanda Managed Award Template, Tanda manages and automatically updates minimum wage increases.
No action is required to receive the minimum wage increase in your Managed Award Template. The update will occur automatically and apply to rosters and timesheets from the first full pay period after the new rates and allowances are effective.
Depending on the payroll software you use, you may need to update base hourly rates manually in your payroll software to also reflect the increase.
Please see the below for further details on actions required within payroll:
Updating rates for Tanda Payroll
Updating rates for Tanda Payroll
For Tanda Payroll clients, base rates update automatically in Payroll for any employees on one of the Managed Award Templates.
For further information on Tanda Payroll EOFY processes please see:
Updating rates for Xero and MYOB AccountRight Live
Updating rates for Xero and MYOB AccountRight Live
For Xero and MYOB AccountRight Live clients, base rates update automatically through Tanda's integration with these providers.
The rates will be updated upon export of the first finalised pay period after the new rates have come into effect.
For the 2024/25 rate increases, this will be the first full pay period commencing on or after 1 July 2024.
NOTE: The timesheets will need to be exported the day after the pay period ends to reflect in Xero and MYOB correctly.
No further action is required, however, you should confirm that the updates have occurred as expected before finalising your first pay run after the change.
Updating rates for all other payroll systems
Updating rates for all other payroll systems
At the beginning of the first full pay period commencing on or after 1 July 2024, follow the below steps to match the rates in your payroll software to the rates in Tanda:
Generate a report of the new base hourly rates in Tanda. To do this navigate to Compliance > Award Template > click Manage next to the applicable modern award:
In the settings for each Manage Award Template, you will find a payroll configuration report button. For example, please see the below button for the integration with CloudPayroll:
Once the button is clicked, the below page will display where the list of current base rates and allowances can be printed:
Then update the base hourly rates in your payroll software to match the new base hourly rates contained in the Payroll Configuration Report.
NOTE: Depending on the payroll software integration enabled, the configuration report button might be named something different but it will always be located in the same place as the above image.
How does Tanda know what the correct rates are?
The minimum wage review for the 2023-24 decision has now been published by the FWC confirming a minimum wage increase of 3.75%.
Over the coming weeks, the FWC will also publish draft determinations and orders on how the increase impacts each modern award. The FWC will then update the pay rates in each modern award accordingly.
Tanda first performs our own calculations to ensure updated rates are available to all users in time for the effective date.
Once the new Pay Guides are issued by the Fair Work Ombudsman, our Compliance Team perform a final validation against the Fair Work Ombudsman Pay Guides. This is to confirm that our methods of rounding match the rounding methods of the Ombudsman.
It's not uncommon to find disagreement between industry body pay guides, and those published by the Ombudsman (usually of 1 cent).
Tanda has called upon the Fair Work Commission and the Fair Work Ombudsman to clarify a rounding standard for these calculations to remove any ambiguity.
How to check the new rates have been updated in Workforce Management
Navigate to Compliance > click the + icon next to Award Template > then all enabled managed templates will display > look at the Last Updated column to see when updates were last made to your Managed Award Template/s:
Step 1:
Step 2:
You can also check the base rate in the Payroll Export Summary of a timesheet that begins in the first full pay period following the effective date:
Further Information
If you have any questions on rate changes, reach out via the chat window to your right in this article or to support@tanda.co.