The minimum wage is updated every year and directly affects the budget of any company with employees. Here’s what you need to know as an employer.
Effect on social security. A change in the minimum wage automatically changes the minimum social security thresholds for a number of positions. This means your employer social security costs can increase even if actual salaries stay the same.
Review your employment contracts. We recommend reviewing any contracts where the agreed salary is close to the new minimum, to avoid falling out of compliance.
Budget planning. Build the new social security thresholds into your staffing budget as early in the year as possible, so there are no surprises in the months ahead.
If you need a review of your payroll documentation related to this change, our team is here to help.