Apprentices / Trainees – 2 Pay increases per year?
Do apprentices or trainees get 2 pay increases per year? If your business engages apprentices or trainees, you really need to understand this and ensure that you are adjusting their wages at the correct time to prevent potential underpayment risks
Please see below for a full transcript of this video
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Transcript
Hi there, Andrew Koleda from On Demand HR with our first video for 2024. I trust all of you had a happy and safe break and ready for everything for 2024 has in store.
Today’s quick update is around apprentices and trainees whom many businesses are not aware typically receive two pay increases per annum. One just after the financial year when the commission hands out its wage decision for the year. The second is typically on the anniversary of when the apprenticeship or traineeship commenced, with most people referring to this as moving from first year to 2nd year as an example.
The amount of change will depend on which modern award covers the apprentice, and we encourage you to seek professional advice if you are unsure.
There are a couple of complications with this in that most businesses typically start out their apprentices at the beginning of the calendar year, but forget to make the adjustment to their wage until the end of the financial year. This has the possibility of creating an underpayment claim and is something that’s easily avoidable.
Our recommendation is that businesses review their apprentice wages at the start of each calendar year as well as in response to the work commissions minimum wage decision to ensure that they remain compliant.
So if your business has apprentices or trainees and you’re not sure if you’re paying the correct rate or would like some assistance in formally rolling out wage increase letters please don’t hesitate to reach out to On Demand HR for help.