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5 Tips To Help You Pay The Correct Wages

Published April 07, 2021 Author: Employsure
Employer happ she knows how to pay her employees correctly.

There are numerous pieces of legislation, ethical considerations, and business decisions to take into account when paying your employees. Getting it right can be hard. Consider these 5 tips to help you pay your employees correctly.

1. Minimum Wage

Depending on the type of work your employee is undertaking there may be legislation, employment agreements and workplace policies that can stipulate what an employee should be paid, when they should be paid, and how.

When hiring your employees, make sure you are aware of the employee’s age and whether an Adult, Starting-out, or Training Minimum Wage, or an exemption applies.

2. Pay A Fair Rate

Your employee is entitled to be paid at least the applicable minimum wage depending on their specific circumstances, however you may want to consider whether the minimum rate is fair compared to the going market rate for your industry.

Paying your employee a little bit more than the minimum requirements may result in a more satisfied employee and one who is likely to stay in the business rather than looking for a higher paid job elsewhere, saving you the bother and the cost of hiring someone new.

An employee must be paid at least the applicable minimum wage for every hour worked, whether or not they are on a wage or salary.  Legislation provides for additional rates if an employee works on a public holiday and some industries have policies or incentives where an employee is paid a higher rate for working overtime or on particular days.  If this is the case, it should be clear in the employment agreement. 

To find out how much employees are generally being paid for their specific job, salary checkers and salary guide reports can be found online or acquired through your industry body.

3. Breaks

Employees must have paid rest and unpaid meal breaks. Rest breaks are short ‘comfort’ breaks of at least 10 minutes, where an employee can use the facilities and kick back for a bit, and these are paid. Meal breaks are longer breaks of 30 minutes or more that allow an employee enough time to have a meal, and are generally unpaid. You can use the roster tool in BrightHR to schedule shifts and breaks.

BrightHR helping you manage your people and business

Contact us to find out how BrightHR people management software can help you manage your employee entitlements and store employee records.

4. Deductions

Employers can’t deduct from an employee’s pay on a whim. Deductions are usually only permitted if required by law, (for example child support), at the direction of a court, or if it is lawful and reasonable in the circumstances and there is an agreement in writing with the employee, though the employee may withdraw their consent at any time.

5. Payslips and Record Keeping

An employee should be provided with a copy of their payslip and you are required to keep employment records, including wage and time records, for the preceding six years, even if the employee is no longer employed.  BrightHR can help employers effortlessly keep track of employee rosters, timesheets, sick leave and holidays and store records in easy to use, cloud-based systems so you meet your record-keeping requirements and can easily access   employee information when you need it.

Employsure can help you understand what to pay your employees and how to meet record-keeping requirements. Call us for free initial advice on 0800 568 012

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About Employsure

Employsure is one of New Zealand’s largest workplace relations advisers to small- and medium-businesses, with over 5,000 clients. We take the complexity out of workplace legislation to help small business employers protect their business and their people.

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