Want advanced tips and tricks on completing your rate rise? Check out our Rate Rise On Demand webinar here!


Use the Rate Rise tool in your foundU platform, to increase your pay (and charge) rates in bulk in line with the Fair Work Commission's Pay Guides.

The below guide will show you how to increase your pay rates.

Please note that you won't be able to do the rate rise until Fair Work releases their pay guides (typically this is done on the day the rates come into effect).

To stay informed of developments relating to the review consider subscribing to the annual wage review updates from Fair Work.

A few key points before you start:

  • Rate Rises don’t come into effect until July 1st.
  • The new rates don’t take effect until the first full pay period on or after the rate rise date. 
  • It is crucial to refer to the pay guide when updating your awards.

The process for completing a rate rise for an award is as follows:

  1. Once the pay guides are released, allocate time within the first full pay period to perform the rate rise.
  2. Set the process date for the rate rise.
  3. Select the award/s to increase the rates for.
  4. Review & edit every classification to match the pay guide.
  5. Update rates books. 
  6. Review permanent & casual employee positions increasing due to the rate rise.
  7. Update allowances.
  Note: Any changes made to employee positions after creating a rate rise, and before processing, may cause issues with your rate increase. We recommend waiting for the rate rise process to complete before making any changes to employee positions, your awards, or rates books.


  Missed our EOFY STP Finalisation webinar? See the details here.

Annual wage increase videos

To learn how to manage an Annual Wage Increase, watch the below videos.  More detail is provided in each step in the article below.

  Please note you should watch both videos to ensure that you execute your rate rise effectively.

In this video you'll learn more about:

  • Key Facts about Annual Wage Increases
  • How to set the date for your rate rise in your platform

In this video you'll learn more about:

  • How to access the rate rise tool in your platform.
  • Choosing the date and percent increase for your rate rise.
  • Selecting the Awards to increase.
  • Checking the classifications and editing where needed.
  • How to edit the rates book for your rate rise.
  • Checking the rates for your permanent employees.
  • Checking the rates for your casual employees.
  • Adjusting your Allowances including award, meal, shift and profile allowances.

Key information before you begin

Before you start please consider the following.

  • Ensure that your Award is actually having an increase. The phased approach to rate rises of the last couple of years means that not all Awards will have a rate increase on the same date.
  • Print the new Pay Guide for your Award or have it on a second monitor for easy reference. You will need this for steps 2- 5 of the Rate Rise process. These often don't come out until the day the rate rise comes into effect.
  • Even if your business doesn’t pay an Award, you’ll still need to ensure that your agreement meets the minimum wage rates.
  • Set aside an appropriate amount of time to complete the rate rise. For single awards allow 30 minutes, for multiple awards allow an hour. For businesses using charge rates, you should potentially allow a few hours.
  • If you need make changes to or add new positions, awards, positions, or rates books, do this before starting the rate rise or after it has processed. Changes made to these things during a pending rate rise will cause the rate rise to not take effect.
  • The rate rise processes overnight. 
  • The rate rise process will not necessarily cater to employees that are paid above award. This is dependent on how you have set up your above award positions.
  The increase doesn’t affect employees who already get paid more than the corresponding new minimum wage.
Using the rate rise tool

Create a new rate rise

  1. In the quick menu select the hamburger icon to open the Full Menu> Payroll Settings> Rate Rise.
    • Here you will see any existing rate rises in progress and any processed rate rises.
    • You can start a rate rise and return to it later if you run out of time. Don't forget to complete the process before the date you choose as your scheduled date.
  2. Select Create a new rate rise.

Set up your rate rise

  1. Choose your rate rise date, as stated by Fair Work. This will be 1st July 2022.
    If your rate rise is in October, please do not complete the rate rise until that time.
  2. Type the base rise percentage for the award/s you are updating. Use 4.6% for this value.
  3. Select how often payroll is processed (weekly, fortnightly or other).
     




    From the below tabs, select the timeframe you pay to view the appropriate instructions.

Weekly Fortnightly Other
  1. Choose the date you will run a final payroll using the old rates.

    date_selection_02.png
  2. If you're completing your rate rise after you've run the final payroll at the old rate, you will be prompted to select the following:
    • Choose the period end date of your final payroll. The day after this date will be used as the start of your first full pay period at the new rate. 
    • Select the date you want to schedule your rate rise. The earliest selection for this will be the next day as rate rises will process overnight.

 

Complete steps 1- 6 of your rate rise:

You'll now see each step to be completed in the tabs below. These steps detail how you complete each of the 6 steps in your rate rise, ensure to open and read each tab in order:

Awards Classifications Rates book Permanent employees Casual employees Allowances

Select all Awards that you would like to increase rates for, or you can select individual Awards at a time.

You will not be able to conduct 2 rate rises on the same Award at once.
Click continue to progress to the next step.

Please note that you can go back to any prior step, but if you make a change you will need to select continue which will undo any changes on subsequent steps.

Complete your rate rise:

Once you have completed the last step you can select Finish. To ensure that your rate rise has been completed properly:

  • You'll now see your rate rise sitting at 100% complete and scheduled on your chosen date.
  • Please ensure that it states 6/6 steps complete.
  • Ensure to process your pay on the correct day (you should receive an email reminder if you opted to when you set up your rate rise).
  • If you go back in and edit your completed rate rise, ensure to complete all of the following steps and press 'Finish' on step 6 so that your changes will take effect.

If you start a rate rise and forget to complete it, a reminder email will be sent to you. This will take place 3 days before the date that your rate rise is scheduled to take place. 

 

Review, edit (or delete) an existing rate rise

You can review all of your rate rises, processed or unprocessed. You can also edit or delete rate rises that have not yet been processed.

In the quick menu select the hamburger icon to open the Full Menu> Payroll Settings > Rate Rise. Here you will see all of your rate rises.

 

  • Any unprocessed rate rises may be edited if need be. If you have need to go backwards in the steps of the rate rise tool, you will have to recomplete the subsequent steps. 
  • If editing a rate rise which has a process date in the past, you will need to go back to the first step and reset the date. 
  • You can also delete any unprocessed rate rises if needed using the delete icon.
  • If you add a new rate rise, please note that any Awards included in a pending rate rise will not be available for the new rate rise.
FAQs

Q. I have just employed some people and need to roster them for tomorrow. Can i do this with a pending rate rise?

There are 2 options here.

  1. Add the person and their position before you commence the rate rise.
  2. Add the person and their position after the rate rise has been processed.

New positions added during a pending rate rise will not be included in the rate rise.

Q. What will happen to the shifts I have rostered? Do I need to hold off approving shifts until the rate rise is done?

The rate rise tool will handle all of this.

You can continue rostering & approving shifts without concern. The rate rise tool will update any shifts / timesheets for the correct period with the correct new rate.

Q. Can the rate rise tool be used for an enterprise agreement?

Absolutely!
The rate rise tool can be used to increase the rates for any of the Award configurations you may have setup. We use the term 'Award' most commonly throughout the platform and in our communication but it extends to Enterprise Agreements, salaried positions, or any other type of custom arrangement.

Q. Are my employees rates going up by 4.6% or 5.2%?

Most of your classifications will be increasing by 4.6% though some may be a little more than that. Use 4.6% as your percentage to increase the rates by but check and correct every single classification to the pay guide.

The pay guide is your source of truth - match that and you're good go!

Q. Will it work with above Award positions?

It depends how you've set up your above Award positions.

  1. On the position (employee profile) - These will only update if they are no longer above award. To increase the rate of an above award employee, do so manually on the position.
  2. In the rates book (position override) - You'll have the opportunity to update the overridden rates in the Rates Book tab of the rate rise process.
  3. Custom classification - You can increase the custom above award classification to the value you want on the classification tab of the rate rise process.

Q. my employee says their new rate is wrong - What should I do?

  1. Check the employee's payslip to confirm the rate that they were paid.
  2. Check the Pay Guide to ensure that the rate paid to the employee is correct.
  3. If you can't work out what is wrong or how to fix it, note down everything and provide us all the details.
Was this article helpful?
8 out of 11 found this helpful