Minimum Wage and Superannuation Increase
Minimum Wage Increase
On 3 June 2025 the Fair Work Commission (FWC) announced the decision for the Annual Wage Review 2024-25.
The FWC decided to raise minimum wages contained in all modern awards such as the Registered and Licensed Clubs Award 2020 (Clubs Award) as well as the Racing Club Events Award 2020 and Racing Industry Grounds Maintenance Award 2020 by 3.5%. The increase needed to take effect on the first full pay period on or after 1 July 2025 which means for example that if a clubs weekly pay period starts on a Wednesday, the new rates would have to have been implemented from Wednesday 2 July 2025 onwards.
The national minimum wage (NMW), that being the minimum rate that applies to employees not covered by a modern award or registered agreement like an enterprise bargaining agreement (EBA), has also been increased, going up to $24.95 per hour and $948.00 per week.
A wage schedule containing the new minimum rates for the Clubs Award is available on the Clubs SA Members Only site and members need to ensure that they properly review the new wage rates and increase employees’ pay where needed.
Superannuation Guarantee Percentage Increase
There has also been a rise in the super guarantee percentage that has to be paid to eligible workers and more information on who is entitled to this can be found here.
From 1 July 2025 this rose to 12% and it is important that Clubs implement this as a failure to do so can result in claims for unpaid super being made to the ATO.
The new percentage will need to be used to calculate super payments made on and after 1 July 2025, even if some or all the payment relates to work that was done before 1 July 2025. The super guarantee needs to be included on payments considered as ordinary time earnings (OTE’s).
How to Help Ensure Compliance?
To ensure that the new wage and super guarantee increases are properly implemented and meet ongoing compliance, clubs should do the following if not already done:
· Look at any bulletins and other correspondence from Clubs SA or elsewhere relating to the wage and super increases;
· Where a Club SA member has employees under the Clubs Award, review Clubs SA’s relevant wage schedules (the Fair Work Ombudsman has pay schedules for other Awards);
· Check that employees are currently being paid the right wages (including payment of penalty rates, allowances and overtime rates where applicable) and super and rectify any issues that are found;
· Ensure those paid award rates or a flat loading linked to award rates (e.g. an IFA under the Clubs Award to be paid a 50% loading) had their rates increased;
· If employees are paid a salary / are having award entitlements offset with an above award rate, then ensure this amount is sufficient to offset award entitlements;
· Also ensure that employees paid a salary / who are having award entitlements offset with an above award rate have a suitable written offset clause and / or agreement legally allowing this such as an Individual Flexibility Arrangement (IFA);
· If employees are covered by an EBA then ensure their base wage rate is not less than the base rate of pay they would receive under the modern award that would cover them if the EBA were not in place;
· Ensure any payroll software is properly set up and calculating correctly.
Members who have any questions regarding minimum wages or super payments can contact Rhys Braybrook o 0448 273 355 or at workplacerelations@clubssa.com.au.
