The Fair Work Commission’s Expert Panel has announced the outcome of its annual review of the national minimum wage and minimum wages under modern awards.
The Fair Work Commission’s (FWC’s) Expert Panel has announced the outcome of its annual review of the national minimum wage (NMW) and minimum wages under modern awards.
National Minimum Wage Increase
Responding to higher costs of living and the need to provide a higher level of support to low paid employees, the Expert Panel has increased the NMW by 5.2% or $40.00 per week.
This will mean that from 1 July 2022, the NMW will now be $812.60 per week or $21.38 per hour.
Minimum Wages in Modern Awards
The Expert Panel also determined to increase the minimum wages in modern awards. Again, aware of the need to provide a higher increase to low paid employees, the Expert Panel determined to increase modern award minimum wages by 4.6% or by $40 per week - depending on the employee’s classification.
The Expert Panel has indicated that this will mean that modern award minimum wage rates:
(a) above $869.60 per week will increase by4.6%; or
(b) below $869.60 per week will increase by$40.00 per week.
The Expert Panel determined that the increase to most modern award minimum wages will come into operation from 1 July 2022. However, the Expert Panel was satisfied that there were circumstances which warranted a delayed operative date for modern awards in the aviation, tourism and hospitality sectors.
The increase to minimum wages will come into operation from 1 October 2022 for the following awards:
- 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.
Draft determinations will be released by the FWC next week. Employers should refer to the determinations to ascertain the relevant increase to the rate of pay applicable to their employees.
