Pay rate change letter to employee template – You can use this sample letter to advise your employees of their change in pay rate if you would like to. You keep a copy for yourself and give one to your employee. Please note this is a sample document that you can change to suit your needs.
Latest update – 6 July 2017
We have received some additional information on the rate increase for people using IF as well as some positive changes to the fees you currently pay.
Please check our Pay Equity Q&A webpage regularly as we will be updating information here.
The Ministry have indicated that the hourly pay rate for people using IF will increase to $30.43 per hour. There will be an equivalent increase with a slightly different calculation for IF Respite, EIF and EGL as these funding schemes use $10 units. The Ministry will recalculate IF Respite, EIF and EGL (excluding MSD) budgets for each person and send them to us as soon as possible after 3 July.
You will no longer pay Host fees out of your allocation!
In addition to a budget increase, the Ministry is changing how Host Providers are paid for baseline host services. You will no longer have to pay baseline host fees from your budgets. The Ministry will pay Hosts directly for these services which include set-up, ongoing coaching and claiming funding from the Ministry. Charges for other services, such as payroll, planning and intensive Coaching services will still need to be funded from your budget. The service charge for Manawanui Payroll will be $15 per fortnight.
Budgeting with the new pay rate
We are not able to tell you exactly what your new funding allocation will be until the change is applied on July 3. We have updated our IF budget tool to help you re-budget. This tool is available at the top[ of this page. Unfortunately we cannot update the EIF, EGL or Respite tools until we receive more information from the Ministry.
- You must allocate all your employees to a pay band and pay them the minimum rate for their band.
- The minimum pay rates are a legal requirement and you must make any changes by July 1, 2017.
- If you do not increase your employees pay rate to the minimum for their band you are in breach of legislation and could be subject to a personal grievance claim.
- The rate for each band is aminimum payment – you can choose to pay your employee’s whatever rate you wish so long as it is higher than the minimum for their pay band and that you keep within your annual budget.
- The Pay Equity Settlement comes in to force on July 1, 2017.
- At this point the Ministry of Health will not be requiring IF clients to submit details of their employee’s qualifications and/or experience in order to determine funding level increases.
- Bands are be based on either length of service OR qualifications whichever is more beneficial to the support worker. For example if someone has been with you for 1 year and has a level 4 qualification, then they come under pay band L4b. If someone has been with you for 9 years but has no qualifications, then they come under pay band L3.
* Length of service is continuous service with same employer – if move to another employer, length of service starts again at 0 years
**The Qualification must be a New Zealand certificate in Health and Wellbeing from an NZQA-accredited provider, or equivalent (a list of equivalent qualifications is avail here)
What do you need to do?
- Check your employee’s length of service and any qualifications they have.
- Identify which band they fit within.
- What is their current hourly rate?
- From 1 July 2017, if their hourly rate is below the minimum for the band they are in, you will need to increase it to this rate.
- If you are using Manawanui’s payroll service and you need to change the hourly rate for your employees, you need to fill in the Employee Change of Details Form above, and send it through to firstname.lastname@example.org.
- You can use our banding tool (above) to help you determine what your employee’s minimum wage rate should be.
Please note: the minimum pay rates are a legal requirement. If you do not increase your employees pay rate to the minimum for their band you are in breach of legislation and could be subject to a personal grievance claim.
If you have any queries please contact our Help Desk on email@example.com, 0508 462 427.