The Fair Work Commission has announced two substantial increases to minimum wages
National Minimum Wage Increase
The National Minimum Wage will increase by 5.2%, amounting to $40 a week.
The new minimum wage will be $812.60 per week or $21.38 per hour.
Award minimum wage increase
The increase to award minimum wages is 4.6%. This is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for full-time employees.
This means the minimum award wages:
- Above $869.60 per week, will get a 4.6% increase
- Below $869.60 per week, will get a $40 increase
When do these changes come into effect?
National Minimum Wage
The new National Minimum Wage will apply from the first full pay period on or after 1 July 2022.
Awards
For most award-covered employees, minimum wages will increase from the first full pay period on or after 1 July 2022.
However, for employees covered under the awards listed below the increase will be effective from 1 October 2022:
Aviation
- Aircraft Cabin Crew Award
- Airline Operations – Ground Staff Award
- Air Pilots Award
- Airport Employees Award
- Air Services Australia Enterprise Award 2016
Hospitality
- Hospitality Industry (General) Award
- Registered and Licensed Clubs Award
- Restaurant Industry Award
Tourism
- Marine Tourism and Charter Vessels Award
- Alpine Resorts Award
Which employees will receive this increase?
Employees whose minimum wage entitlements are set by:
- The national minimum wage
- A modern award
- A registered agreement (in some circumstances)
Non-award covered employees
It is important to note that if you have non-award covered employees on a salary which is above the national minimum wage, you are not obliged to increase their salary. However, with the current job market being so competitive and a shortage of potential employees available in the Australian market, it may be worth undertaking salary benchmarking and considering an increase when undertaking your next salary review process.
Next steps
- Check whether your employees are covered by the national minimum wage, or a modern award.
- Should a modern award apply to your employees, ensure you have correctly classified employees under the relevant award, and confirm the minimum rates of pay that will apply.
- Review the current rates of pay for your employees and, if required, adjust their pay rates from their first full pay period starting on or after the appropriate date as it applies to your modern award.
Changes to Superannuation from 1 July 2022
It is important to also note that the increase in the super guarantee rate from 10% to 10.5% will be effective from 1 July 2022. Read more about the changes to superannuation here.
Contact us
Our experienced HR Consultants at Allan Hall HR are available to answer your queries regarding the wage rise and assist you with salary benchmarking, clarification of awards or any other employee-related matters. Please get in touch with us today on 1300 675 393 or at [email protected] .