Minimum Wage and Award Increases
Last Wednesday, the Fair Work Commission announced two increases that will impact most employers.
National Minimum Wage
The National Minimum Wage will increase by 5.2%, which amounts to $40 per week for a full time employee.
This increase takes effect on the first full pay period on or after 1 July 2022.
The new minimum wage will be $21.38 per hour, which equates to $812.60 per week for a full time employee
Award Minimum Wages
Award Minimum Wages will increase by 4.6% with a minimum increase for award classifications of $40 per week.
What this means is:
- Minimum award wages above $869.60 per week get a 4.6% increase
- Minimum award wages below $869.60 per week get a $40 increase
The weekly wages and $40 increase are based on a full time employee working 38 hours per week. The increase will be pro-rata for any part time employees.
Most awards will take effect from the first full pay period on or after 1 July 2022, however some awards in aviation, hospitality and tourism will take effect from 1 October 2022.
What you need to do next:
The Fairwork Ombudsman are still working through updating their website with up to date award information and tools. It is worth subscribing to their updates so you are aware as soon as you award (s) are updated and live.
Once you have the information that impacts your staff:
- Calculate the applicable increase for each employee.
- Communicate that increase to your employees so they are aware of their new pay rate.
- Ensure your payroll system is updated with the new rates to take effect in your first full pay period after 1 July 2022.
We are here to support you
This is a complex and wide-ranging increase. If you need help in understanding what this means for your business, give us a call. We are always here to support you to get through complex financial issues like this.