ASGA - National Minimum Wage to Increase
The Fair Work Commission has ordered the national minimum wage to increase by 5.2%, lifting the national minimum wage from $20.33 to $21.38 an hour while the Modern Award minimum rates with go up by 4.6%. This will be a minimum increase $40 per week to at least 2.7 million workers on the national minimum or award minimum wages. This means that employees on
awards earning above $870 per week will receive a 4.6% increase while those below that level will get $40 more per week.
awards earning above $870 per week will receive a 4.6% increase while those below that level will get $40 more per week.
Justice Ian Ross attributed the requirement for such a raise to high inflation and the increased cost of living.
The Fair Work Commissions decision will be unlikely to affect employers that already pay well over the award or employers that have employees that are not award.
We advise employers who have employees covered by an Enterprise Agreement, that they consider the relevant clause within the Enterprise Agreement that details the mechanism for annual increases.
Of course, all employers must at least meet the Federal Minimum Wage.
Employers that pay slightly above the award rate will need to check whether that buffer exceeds the 5.2%/4.6% increase, if they do not intend to raise the rates.
The Fair Work Commission will release their official decision late next week confirming the changes to come into effect 1 July 2022. Increases to the minimum wage in the aviation, tourism and hospitality sectors will be delayed until 1 October 2022.
If you have any questions in relation to the above, ASGA’s Legal and Business advisors, Hickson Lawyers, can assist with navigating these changes for you.