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Small Business Tips: Calculating employee pay and benefits

Small Business Tips: Calculating employee pay and benefits

The world of employee entitlements can be a complicated one, especially if you are new to it and trying to navigate your way through it on your own.

What is the fair and correct pay rate for your employees? What annual, sick and other leave entitlements should you be providing? How many hours should you be expecting your employees to work? All questions with answers that may differ from job to job and industry to industry.

Fortunately, the FairWork Ombusdman has released a series of calculators to assist you to in determining exactly how much to pay your employees. The Pay and Conditions Tool “The PACT” includes a Pay Calculator for determining base pay rates, allowances as well as penalty rates, a Shift Calculator for calculating pay rates for shift workers, a Leave Calculator for annual, sick and carers leave as well as leave loadings and a Notice and Redundancy Calculator for notice periods and redundancy entitlements.

The PACT is a facility for both employees and employers to ensure they are paying and receiving fair remuneration for their efforts, and is designed to promote transparency across the workforce. You can access The PACT calculators via the fairwork website.

The consequences of not meeting the legal requirements for fair working conditions can be disastrous for a business, but help is available – visit www.fairwork.gov.au for more information.

Ensure you have adequate protection for your business in the event that errors occur. Speak to you an insurance adviser about your specific requirements – visit cgu.com.au to find an adviser.

Related: Workers Compensation – the basics