The Fair Work Commission has ruled the minimum wage should increase by 5.2% for award rates below $869.60 (which equates to an extra $40 per week) and 4.6% for award rates above $869.60.
The changes will take effect from the first pay period on or after 1 July 2022.
The decision affects more than two million workers across the country, and takes the national minimum hourly rate to $21.38.
However, workers under 10 awards will have to wait till 1 October 2022 for their wage increases, after the panel accepted the aviation, tourism and hospitality sectors had not yet fully recovered from the pandemic’s economic effects.
The Awards that have delayed operation include
- Aircraft Cabin Crew Award 2020
- Airline Operations – Ground Staff Award 2020
- Air Pilots Award 2020
- Airport Employees Award 2020
- Airservices Australia Enterprise Award 2016
- Alpine Resorts Award 2020
- Hospitality Industry (General) Award 2020
- Marine Tourism and Charter Vessels Award 2020
- Registered and Licensed Clubs Award 2020
- Restaurant Industry Award 2020.
President Iain Ross said the Fair Work Commission made the decision because of soaring inflation, and the severe impact that has on some of Australia’s lowest paid workers.
He said “Given the current strength of the labour market, the adjustments we propose to make will not have a significant adverse effect on the performance and competitiveness of the national economy.
In our view, awarding an increase in modern award minimum wages of the magnitude proposed by ACCER, some 6.5 per cent, and the ACTU – 5.5 per cent, would, in the present economic circumstances, pose a real risk of significant adverse effects to the national economy.
We acknowledge that the increases we have determined will mean a real wage cut for some award reliant employees.
This is an issue that can be addressed in subsequent reviews.”
The ACTU had been calling for an increase of 5.5 per cent, while employer groups had been calling for increases of between 2.5 and 3 per cent.
Last year, the Fair Work Commission decided on a 2.5% increase, which it delayed for the sectors of the economy hardest hit by the pandemic
The full decision can be found here:
Please contact the BetterHR Advice team, if you need assistance confirming that all your employees are still being paid their lawful entitlements.