Upcoming changes to 37 Modern Awards – Know your obligations
From January 2025, new pay rates will be introduced to 37 modern awards and new rules about how long employees can stay at the lowest classification level in modern awards will be introduced. The 37 awards fall into three categories:
Group One
Changes within Award
New rules about how long employees can stay in the lowest classification or ‘introductory’ levels.
What does this mean?
Employees will only need to stay at the lowest classification level in the award for a maximum period of time (which may different across different Awards but will not exceed six months) before progressing to the next classification level.
Therefore, from 1 January 2025, employees need to review current employees on the lowest classification level and if required, reclassify them (and accordingly update their minimum rates of pay).
Group Two
Changes within Award
Increases to pay rates for employees at some of the lowest classification levels.
What does this mean?
This only effects Awards as of 1 January 2025 including:
Architects Award
Business Equipment Award
Children’s Services Award
Electrical, Electronic and Communications Contracting Award
Group Three
Changes within Award
New rules about how long employees can stay in the lowest classification and increases to pay rates for employees at some of the lowest classification levels.
What does this mean?
Changes are effective 1 January 2025, except for the Pastoral Award which is being amended from 1 April 2025.
For further information regarding how these changes may affect your business, please contact the HRAnywhere advisory team on 1300 208 828 or info@hranywhere.com.au.