The Fair Work Commission has ruled in its 2022 Minimum Wage Review announced today, that Australia's lowest paid workers receiving the National Minimum Wage will receive a 5.2% pay increase from 1 July this year. This equates to $40 per week based on a 38 hour work week.
The Fair Work Commission also ordered the modern award minimum rates to go up 4.6% “subject to a minimum increase of $40 per week”.
In other words, the decision specifies:
- modern award minimum wage rates above $869.60 per week will receive a 4.6% adjustment;
- wage rates below $869.60 per week will be adjusted by a flat $40 per week.
What does this mean for you?
- If you are currently paying any one at the minimum entitlement under the Award, it must increase 1st July (first pay cycle after this date) except for those working in the aviation, tourism and hospitality industries in which the increase is delayed until 1 October.
- The new national minimum wage will be $812.60 per week or $21.38 per hour.
- If you are operating under an EBA you must ensure that your rates of pay are at least equal to the new Award rates (irrespective of having an EBA in place, rates can not be lower than those contained in the relevant award).
- If you are unsure as to how to apply the split decision 5.2% vs. 4.6%, please contact the HR Staff n' Stuff team for advice.
