In Australia, any Junior (under 21 years of age) working under an Industry Award with junior rates is entitled to a pay increase annually on their birthday.
It’s definitely hard enough trying to remember your family and friend’s birthday (what did we do before Facebook?!), let alone remembering to update an employee’s pay rate every time they have a birthday – so it’s understandable that this has been a big pain point for a lot of our customers.
At Deputy, we’re committed to building the right tools to help support Australian businesses stay compliant with Industry Awards, which is why we’re excited to share our newest update built to help businesses stay compliant with these Junior pay rate regulations.
We’ll be stepping through the update in more detail below, however the headline is true, and you can now set your junior rates to automatically update each birthday – so you can enjoy total peace of mind that your junior team are being paid correctly!
Setting up your Junior Rates template
Before you get started, you’ll need to make sure that your employee’s have been allocated an Industry Award in their Pay Rates (you can read more on how to do this here) as well as make sure their birthday has been added correctly in their profile (more on how to set that up here).
Once this is done, you’re ready to start setting up the best bit – the automatic update template! You’ll find this new template as an extension labelled ‘Birthday Today > Update Junior Pay Rate’ within the Notifications and Integrations tab within your location settings.
After you select ‘Activate’ to turn on the extension, there are a couple of different steps you will need to complete to make sure you have set the updates up correctly.
- Select an Industry Award
You will need to ensure that the Award you select matches with the employee’s rate you have previously set up.
- Award classification
If you have selected an Award with different classification levels that’s not identified in the Award name, type in the classification here. This will help provide some additional context later on down the track.
- Adding base rates
In the open fields underneath the Junior age ranges (from Under 16 up to the Adult Rate), you will need to enter the corresponding pay rate. You will be able to find out the correct pay rates for each age group on the Fair Work website.
At this point, it is also important to confirm that your employee’s pay rate match with the correct base rate you have entered for their current age.
For example, if you have an employee aged 17 years old with a base rate of $18.50, the value entered in the field for 17 must be $18.50 as well for the automatic update to work. When the employee turns 18, their base rate will then be automatically updated to the value you entered for the 18 year old pay group.
- Save your settings, then sit back and relax!
If you have an employee that is assigned to two locations, and is paid under a different Award at each, you will need to set up separate Junior Pay Rates templates for each location. Otherwise, if they are on the same Award and base rate but working at multiple locations, you can toggle on the extension for all locations, meaning you’ll only need to set it up once!
With the junior pay rate template now set up, you can enjoy the peace of mind in knowing that Deputy will take care of the automatic pay updates on their birthday*. You can also elect for the manager to receive a notification (either by email, push notification or both), every time a pay rate is updated using the auto-update, so there’s no surprises when it’s time to run your payroll.
*Please note that if you have an existing payroll integration set up, the automated junior pay rate update will only be effective if Deputy has been set as the primary source of truth for pay rates. If you are unsure how your integration is set up… please contact support
If you are exporting you’re timesheets for Payroll through the CSV format, Deputy will be your primary source of truth for pay rates, and this extension will work.
So there you have it! After you have the Junior Pay Rates template set up, every time a junior employee has a birthday their base rate will be updated. You’ll be reminded it’s their birthday and you won’t need to lift a finger to make sure you’re paying the correct rate – it’s a win-win! Just don’t forget to wish them a happy birthday!
Need a hand staying compliant with Australia’s Fair Work Conditions? Find out more about Deputy’s in-built award interpretation below.
The information contained in this article is general in nature and you should consider whether the information is appropriate to your needs. Legal and other matters referred to in this article are of a general nature only and are based on Deputy's interpretation of laws existing at the time and should not be relied on in place of professional advice. Deputy is not responsible for the content of any site owned by a third party that may be linked to this article and no warranty is made by us concerning the suitability, accuracy or timeliness of the content of any site that may be linked to this article. Deputy disclaims all liability (except for any liability which by law cannot be excluded) for any error, inaccuracy, or omission from the information contained in this article and any loss or damage suffered by any person directly or indirectly through relying on this information.