What to pay your employee can be a difficult question, potentially leading to uncomfortable discussions. But doing your research beforehand can make a big difference.
It’s worth not only looking at your competitors in the market, but also what’s going on outside of your industry in terms of people who are performing a specific function.
Employees are sometimes willing to trade off security and other benefits for flexibility, gym memberships, training and education or other perks.
That said, pay rates are only one part of the equation and it is always beneficial to know what the minimum wage is for a profession.
A starting point to get advice about pay, conditions and what’s required by employers is CCIWA’s Employee Relations Advice Centre.
As laws change frequently, CCI offers an Industrial Awards Service as well as subscriptions and ready-to-use guides to help with your employee and industrial relations matters.
Other resources include:
- Department of Mines, Industry, Regulation and Safety
- West Australian Industrial Relations Commission
- Fair Work Commission.
Pay and conditions can depend on whether you are under the Federal or State system.
The majority of employers in the private space will have employees that are covered under a Federal Award.
Employees in the Federal system can be covered under an enterprise bargaining agreement, federal award, or the National Employment Standards.
The State system covers State Government employees and a body of mostly unincorporated associations that solely operate in WA, such as a family-owned small business.
Not-for-profit organisations could also potentially be in the State system depending on a variety of factors, including funding arrangements.
Businesses in the State system are either covered by an agreement, award, or the Minimum Conditions of Employment Act 1993 (WA) and the Industrial Relations Act 1979 (WA).
Guidelines for employees depend on whether they have struck a registered contractual agreement with an employer, the award and the area of work.
But in all cases employees need to be paid at least the relevant minimum wage.
If the relevant minimum wage is not implemented, the employer is breaking the law.
There are also laws governing things like compulsory employer superannuation contributions, taxation laws, workers’ compensation, insurance and businesses should also be aware of their obligations in these areas.
