Posted on: Jun 19, 2017
The bill to implement a historic pay equity settlement for 55,000 of the health sector’s lowest paid workers passed into law on the 8th June, with unanimous support from across the House.
The Care and Support Worker (Pay Equity) Settlement Bill was fast-tracked through Parliament to ensure providers of aged and disability residential care, and home and community support services pass on the new wage rates to their workers from 1 July.
“This legislation means from 1 July eligible workers will receive pay rises of between 15 and 50 per cent,” says Dr Coleman.
“For a full-time worker, this means they will be taking home around $100 extra a week, or more than $5,000 a year.
“For the 20,000 of the 55,000 workers currently on the minimum wage of $15.75 per hour, it means from July 1 they will move to at least $19 per hour, a 21 per cent pay rise.
“Existing workers will be transitioned to positions on the new pay scale which reflect their skills, and their experience. For new workers employed after July 1 wages will be based on an individual’s level of qualifications.
“This settlement corrects an historic undervaluation for this group of hard working and predominantly female health workers who care for some of New Zealand’s most vulnerable people.
“With three weeks to go, the focus is now on provider readiness and supporting providers to meet their legal obligations.”
The Ministry of Health is working closely with funders and providers on ensuring the first pay run after 1 July goes smoothly.
To support the implementation the Ministry has held nationwide information sessions, set up an implementation helpdesk, arranged to make advance payments to providers, and released guidance tools to help providers assess eligibility and transition workers to the new pay scale.
Support for providers and employees is also available through DHBs, unions, other government agencies like IRD and MBIE, and care and support industry peak bodies.
The $2 billion settlement over five years follows the TerraNova pay equity claim brought by E tū on behalf of care worker Kristine Bartlett.
The $2.048 billion settlement over five years will be funded through an increase of $1.856 billion to Vote Health and $192 million to ACC.
Source: beehive.govt.nz
Disclaimer
This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.
Posted on: Jun 19, 2017
There are two main changes to parental leave payments that have taken effect as of 1 June 2017:
- One change means employees who want to receive parental leave payments can now use their paid leave (eg annual leave, alternative days, special leave or time off in lieu) first. In that situation their parental leave payment period can start at the end of their leave, even if it is later than the child’s arrival or due date. Before 1 June 2017, the parental leave payment period can’t start later than the child’s arrival.
- Another important change means that a parent with a preterm baby has more flexibility around returning to work and parental leave payments. If a person has a preterm baby and they return to work after they start getting a preterm baby payment or parental leave payment, their payments stop and they lose any remaining preterm payments. However, from 1 June 2017, they can still get their parental leave payments when they go back on parental leave, as long as it’s no later than the original expected date of birth (had the baby not been born prematurely).
Source: MBIE – for more information parental leave payments for pre term babies click here
Disclaimer
This article, and any information contained on our website is necessarily brief and general in nature, and should not be substituted for professional advice. You should always seek professional advice before taking any action in relation to the matters addressed.