05 December 2024
From 1 January 2025, changes to entry-level classifications in various modern awards will take effect.
Introductory classifications apply to the first stage of a job, which includes:
- an initial induction period;
- time spent undertaking training; or
- enough time to gain basic skills and experience required for the job.
All employment classifications that aren’t introductory classifications must be paid at least the National Minimum Wage.
The new maximum time limit for introductory level classifications varies between awards but is never longer than 6 months.
Some awards allow an employee to progress to the next classification before they’ve reached the maximum time limit for the introductory classification. Eg based on the employee demonstrating their competency or achieving a required qualification.
Due to the new rules commencing, some minimum pay rates may go up for the first full pay period on or after 1 January 2025.
The Fair Work Ombudsman has updated their pay guides and their Pay And Conditions Tool (PACT) to reflect these new rates.
Employers are encouraged to check if they are affected by the changes and to take action to ensure compliance beyond 1 January. A list of affected awards can be found here.
If you require assistance to understand the changes, please get in touch.
Sky Accountants Ballarat
Phone: 03 5332 8855
Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia
Postal Address: PO Box 2234, Bakery Hill, Victoria 3354
Sky Accountants Gisborne & Macedon Ranges
Phone: 03 5428 1400
Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia
Postal Address: PO Box 270 Gisborne Victoria 3437
Sky Accountants Kilmore
Phone: 03 5782 2299
Office Address: 74B Sydney Street, Kilmore, Victoria 3764, Australia
Postal Address: PO Box 190 Kilmore Victoria 3764