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Fair Work Ombudsman has advised: Get ready for a minimum wage increase

Following the Annual Wage Review 2021-2022, the Fair Work Commission (FWC) has made the following two announcements:

– The National Minimum Wage will increase by 5.2%, which amounts to $40 per week

– Award minimum wages will increase by 4.6%, which is subject to a minimum increase for award classification of $40 per week and based on a 38-hour week for a full-time employee.

What is the National Minimum Wage and who will the increase affect?

The National Minimum Wage is for employees who are not covered by an Award or Registered Agreement under their current employment. It is a general rate that determines:

– a national minimum wage for adults

– a special national minimum wage for:

– trainees, apprentices, and junior employees

– employees to whom training arrangement apply

– employees with a disability

– a casual loading.

The current National Minimum Award Wage is:

– $20.33 per hour

– $772.60 per week

and will increase from 1 July to:

– $21.38 per hour

– $812.60 per week

What about the new minimum Award wages?

Most employees in the national workplace are covered by a modern award that contains the minimum wage, as well as other terms and conditions, for employees in particular industries and occupations. Because these award wages vary from industry to industry, there is no single figure.

The Fair Work Commission advises that the minimum increase for adult award rates will be based on a 38-hour work week for a full-time employee.

Workers that are currently receiving more than $869.60 per week will receive a 4.6% rise in their earnings.

Workers who currently earn less than $869.60 per week will be adjusted by a flat rate of $40 per week.

This will ensure that no one misses out on the $40 increase, however, those who earn more will be better off.

When can I expect my pay rise?

These changes will take effect from 1 July 2022, however, due to “exceptional circumstances” surrounding the COVID-19 pandemic, the Fair Work Commission has delayed the increase for workers under the following awards until 1 October 2022:

– Aircraft Cabin Crew Award 2020

– Airline Operations – Ground Staff Award 2020

– Air Pilots Award 2020

– Airport Employees Award 2020

– Air services 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

If you are not sure what award applies to your employment, you can use the Find my award tool on the Fair Work website. Another way to keep up to date with the changes would be to subscribe to email updates, and Fair Work will inform you when new rates become available for your applicable award.

Don’t have the time but want to make sure you are compliant with all coming wage changes? Contact one of our addWorth team members today and we will get it sorted for you!

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