Pay packets will change slightly tomorrow as new rates come into force and businesses may see their ACC experience ratings shift as the organisation makes adjustments.
From tomorrow (April 1) the minimum wage is to rise while ACC levies are to decrease.
The new adult minimum wage rates (before tax) that apply to employees aged 16 or over will rise from $13.75 to $14.25 per hour ($114 for an eight hour day or $570 for a 40-hour week).
The Starting-out wage rates and the training minimum wage rates (before tax) will also increase from $11 to $11.40 an hour ($91.20 for an eight hour day or $456 for a 40-hour week).
Additionally, the ACC levy rates for both self-employed and employers are to reduce with a 17% decrease in the average Work levy and 15% decrease on the Earners’ levy.
For employers the rate will drop from $1.15 to $0.95 and for employees $1.48 to $1.26.
Coinciding with the levy change, some businesses will see an increase in their experience rating loading.
ACC is adjusting the loadings on experience rating to more accurately reflect costs that businesses with higher claims rates drive to the scheme. The rating takes into account a business’s claims history when setting its levies. Under experience rating, employers who have lower-than-average injury rates, with better-than-average rehabilitation or return to work rates, may receive a discount on their work levy. Those with worse-than-average claims experience may receive a loading on their levy.
According to Business.govt.nz “the experience rating discount will stay at 50% – however, the calculation for businesses that have a worse-than-average claims experience rating could increase from 50% up to 75%”.
The change is to make it fairer for businesses whose safety performance is average to excellent, and to create an incentive for businesses with worse than average performance to develop good health and safety practices.
The levy paid by the self-employed and employers to meet the costs of administering the Health and Safety in Employment Act will also rise to eight cents (from five cents) per $100 of gross wages and salaries.
The new adult minimum wage rates (before tax) that apply to employees aged 16 or over will rise from $13.75 to $14.25 per hour ($114 for an eight hour day or $570 for a 40-hour week).
The Starting-out wage rates and the training minimum wage rates (before tax) will also increase from $11 to $11.40 an hour ($91.20 for an eight hour day or $456 for a 40-hour week).
Additionally, the ACC levy rates for both self-employed and employers are to reduce with a 17% decrease in the average Work levy and 15% decrease on the Earners’ levy.
For employers the rate will drop from $1.15 to $0.95 and for employees $1.48 to $1.26.
Coinciding with the levy change, some businesses will see an increase in their experience rating loading.
ACC is adjusting the loadings on experience rating to more accurately reflect costs that businesses with higher claims rates drive to the scheme. The rating takes into account a business’s claims history when setting its levies. Under experience rating, employers who have lower-than-average injury rates, with better-than-average rehabilitation or return to work rates, may receive a discount on their work levy. Those with worse-than-average claims experience may receive a loading on their levy.
According to Business.govt.nz “the experience rating discount will stay at 50% – however, the calculation for businesses that have a worse-than-average claims experience rating could increase from 50% up to 75%”.
The change is to make it fairer for businesses whose safety performance is average to excellent, and to create an incentive for businesses with worse than average performance to develop good health and safety practices.
The levy paid by the self-employed and employers to meet the costs of administering the Health and Safety in Employment Act will also rise to eight cents (from five cents) per $100 of gross wages and salaries.