Post –election is now a time to ask for a pay rise?
National Wage Increase 2.6% p.a. and Employer Super increase to 9.25% p.a. from 1st July 2013
By now you should have realised your staff may have been entitled to a 2.6% p.a. national wage and a 9.25% super guarantee increase effective from 1.7.2013. Practices should have updated their payroll software programs to reflect and pay these changes.
Currently wages represent 60% of a practice’s total overheads so it is a significant investment. Freezing staff wages can significantly hurt morale, however any significant cost increases will have to met by either reducing quality or increasing patient fees.
On the 1st July 2013 wage rates have increased by 2.6% p.a. For practices that predominantly receive the Medicare Benefit Schedule rebate, the rebate has been frozen in 2013. Recently there have also been numerous increases and changes in superannuation, tax and industrial lawsincluding the 2013 General Practice Registrar arrangements.This is a great opportunity to engage positively with recruitment and retention of your staff. This includes improving the sustainability of the practice. Our newly revised employment kit will allow practices to offer a better employment package to key staff in the short and long term that provides a solid career structure that includes employer paid training.
The new variations to our employment kit are designed to minimize any significant statutory employee on-costs. More importantly the revised templates allow practices to pay for staff training e.g to the Australian Association of Practice Managers conference (www.aapm.org.au) (which is a great motivator). This can also significantly improve practice efficiencies and viability. This will allow for better structured long term career progression and a fairer remuneration package. The new terms will help identify, train and reward your key staff plus offer flexibility working arrangements without significant to the risk to the practice. It is a win win for everyone.
This solution will enable you to continue to reward your staff on merit and provide high quality services and minimise patient fee increases.
In order to achieve this objective we have updated our employment kit to include:
- Absorption of future statutory increases in Employer Superannuation contributions not based on productivity currently 9.25%.
- Employers can choose to absorb annual wage CPI increases i.e. 2.6% p.a into existing over award payments
- Absorption of significant Fringe Benefits Tax implications when paying for staff training or courses (currently under a 1 year reprieve).
- Updates to the Individual Flexibility Agreements to keep them Fair Work Australia compliant.
- Addition of a useful Delegations Policy for your Practice Manager / CEO so you no longer have to micro-manage the Practice.
- Updated the hyperlinks and referencing to the appropriate awards and legislation (this is a legal requirement).
- For your convenience we have also included the most common and latest awards as at 1.7.2013 for the healthcare industry.
- Employer paid staff recruitment and retention clause to improve practice efficiency and pay for staff training and future remuneration increases.
Fair Work Australia have advised that to have a valid Individual Flexibility Agreement, you must issue new employees a reconfirmation of the terms and conditions of their employment. This should occur after a sufficient work period in which both the employer and the employee are satisfied that the job and tasks meet the employment terms and conditions.
Commencing 1.7.2012, if you have purchased the Employment Kit in the past 12 months, we are issuing you this upgrade free of charge (valued at $320+GST). If you have not purchased a kit download the attached content of the employment kit including useful job descriptions and a quote and email us at firstname.lastname@example.org to order.
We strongly recommend you consider reconfirming your employment agreements in order to implement these changes.
If you have any queries, please contact us before making any changes call us at no obligation on 1800 077 222 to find out more.
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