Fair Work Commission Increases National Minimum Wage and Modern Award Rates

The Fair Work Commission has handed down its much-anticipated Annual Wage Review decision for the 2022/2023 financial year.

As a result of this decision, there will be significant increases to the National Minimum Wage and modern award minimum wage rates as detailed below.

National Minimum Wage

From 1 July 2022, the National Minimum Wage will increase to $812.60 per week or $21.38 per hour (based on a 38-hour work week). This reflects an increase of $40.00 per week, or 5.2%, to the current National Minimum Wage.

Modern Award Minimum Rates

Modern award minimum wage rates will increase by 4.6%, subject to a minimum increase of $40 per week for full-time adult employees (based on a 38-hour working week). In effect, this means that the minimum wage rates will increase by:

  • 4.6% per week for employees currently earning more than $869.60 per week; and
  • $40 per week for full-time employees currently earning less than $869.60 per week.

These increases will take effect from the first full pay period commencing on or after 1 July 2022. However, in respect of the following awards covering the aviation, tourism and hospitality sectors, these increases will take effect from 1 October 2022:

  • 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

Employers need to familiarise themselves with these wage increases and take steps to ensure that from 1 July 2022, their wage arrangements with their employees are updated as necessary so that there is no risk of their employees being underpaid. This applies not only to employees who are paid award wages but also to employees who are paid an annualised salary. Employers need to ensure that the annualised salaries paid to their employees are sufficient to ensure that the employees are still paid in excess of what they are strictly entitled to be paid under the relevant award.

Addisons’ employment law team can assist employers in understanding and complying with their pay obligations under the Fair Work Act 2009 (Cth) and the modern awards.

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