2.5% Wage Increase to Awards and National Minimum Wage
Warning: Australia’s minimum wage rises 2.5% from 1 November 2021 – Are you compliant?
Employers who pay minimum wage rates under a modern award (and certain industrial instruments), will be required to increase their employees’ pay in the first pay period on or after 1 July 2021, 1 September 2021 or 1 November 2021 – depending upon which modern award applies.
Almost 2.2 million employees across Australia will see a pay rise following the release of the Fair Work Commission’s (FWC) Annual Wage Review.
The new national minimum wage will be $772.60 per week or $20.33 per hour. This constitutes an increase of $18.80 per week to the weekly rate, or 49 cents per hour to the hourly rate. It is the first time the minimum adult wage is above $20 per hour.
This rate is higher than the increase which was ordered last year of 1.75%.
What does this mean for employers?
Employers who pay their employees under an industrial instrument, such as a collective or enterprise agreement, should review the rates under those instruments to ensure that they are equal to or above the applicable minimum wage rates.
Employers who pay their employees above the minimum wage rates may be able to absorb the increases without making any changes.
Awards to increase in November
- Air Pilots Award 2020
- Aircraft Cabin Crew Award 2020
- Airline Operations – Ground Staff Award 2020
- Airport Employees Award 2020
- Alpine Resorts Award 2020
- Amusement, Events and Recreation Award 2020
- Dry Cleaning and Laundry Industry Award 2020
- Fitness Industry Award 2020
- Hair and Beauty Industry Award 2010
- Hospitality Industry (General) Award 2020
- Live Performance Award 2020
- Mannequins and Models Award 2020
- Marine Tourism and Charter Vessels Award 2020
- Nursery Award 2020
- Racing Clubs Events Award 2020
- Racing Industry Ground Maintenance Award 2020
- Registered and Licensed Clubs Award 2020
- Restaurant Industry Award 2020
- Sporting Organisations Award 2020
- Travelling Shows Award 2020
- Wine Industry Award 2020
The Fair Work Act 2009 (Cth) (Act) requires the Fair Work Commission, constituted by an Expert Panel for annual wage reviews, to conduct and complete a review of the national minimum wage (NMW) and modern award minimum wages in each financial year.
You can find further details regarding the rate increase here:
Disclaimer: This article contains general information only. Regrettably, no responsibility can be accepted for errors, omissions or possible misleading statements or for any action taken as a result of any material in this guide. It is not designed to be a substitute for professional advice, as such a brief guide cannot hope to cover all circumstances and conditions applying to the law as it relates to these items.