Do We Need to Update Wages After the Minimum Wage Increase?
- johnry8
- Sep 19
- 2 min read
When the minimum wage goes up, many business owners ask themselves the same question: “Do I really need to adjust wages right away?” The simple answer is yes.
Updating wages is not only a legal responsibility, but it also helps you keep your team motivated, avoid disputes, and protect your reputation. If you leave things as they are, you could face penalties, employee complaints, or even audits.
Another important point to remember is that it is not just workers on the minimum rate who are affected. Increases often flow through to employees covered by awards, casual staff, and anyone whose entitlements are linked to the base wage.
What You Need to Know
Who Is Affected
Employees on the minimum wage must be paid the updated rate.
Award covered employees may also need adjustments if their award is tied to the new rates.
Casual workers are included, since their loading is calculated from the base pay.
Your Legal Responsibility
Employers are required to pay at least the updated minimum wage. If not, you risk fines, back payments, and complaints through Fair Work. Waiting for an employee to raise the issue is not an option, it is the employer’s duty to act.
How It Impacts Your Business
The increase does more than raise pay packets. It can change overtime rates, leave entitlements, and superannuation contributions. This is why good cash flow planning is important so your business can adjust smoothly without unnecessary stress.
Best Practices for Employers
Review staff contracts and any awards that apply.
Let your employees know about the changes so they feel informed and valued.
Make sure your payroll system is up to date so that errors are avoided.
Ask for professional advice if you are unsure how the increase applies to your industry or team.
Final Thoughts
Yes, you do need to update wages after the minimum wage increase. Doing so is about more than staying compliant with the law. It shows that you value your employees and are serious about running a responsible business. With the right advice and planning, you can stay compliant and continue to grow with confidence.
Not sure how the wage increase affects your business?