As a business owner or manager, you must be prepared for the minimum wage increase on Saturday, April 1, 2023.
The details of the increase are:
- Adult minimum wage will go up, from $21.20 to $22.70 per hour.
- Starting-out and training minimum wage will go up from $16.96 to $18.16 per hour.
- All rates are before tax and any lawful deductions, for example PAYE tax, student loan repayment, child support.
If you haven’t already spoken with your accountant, payroll provider, or finance/HR teams, now is the time to do so. It is also a chance to ensure that your employment records, processes, and systems are up to date.
How to prepare
- Advise the team If you have employees receiving the minimum wage, inform them of the upcoming increase. Send them a letter or email (variation of employment contract) informing them of their increase in pay.
- Check your payroll systems and processes Communicate with whoever manages your payroll system, including your payroll provider, accountant, attorney, and HR or finance personnel, to ensure they are prepared for the transition.
Communicate with whoever manages your payroll system, including your payroll provider, accountant, attorney, and HR or finance personnel, to ensure they are prepared for the transition. If your system is manual or computer-based you should check and confirm the settings will be modified for the new rates.
If any of your employees are on starting-out or training wages, now is a good chance to figure out when they will be entitled to transfer onto the adult rate.
If any employment agreements (contracts) are not current or you did not give one to your staff, now is a great moment to discuss this in good faith with your staff.
Amend the contract with any terms and conditions agreed upon by both parties since the previous time the contract was reviewed. Make sure they include all the compulsory clauses a contract should have under law by using an Restaurant Association template.