Minimum wage set to rise by 5.2% from 1 July 2022
This morning, the Fair Work Commission has made a decision to increase the minimum wage by 5.2%, from $20.33 to $21.38 per hour.
This minimum wage increase will have a direct impact on employees under the Modern Award system, with a 4.6% increase to the modern award minimum wages.
For many organisations, the minimum wage increase will take effect from 1 July 2022. In acknowledgement of exceptional circumstances, a delayed effective date will be put in place for the aviation, tourism and hospitality sectors, with new rates commencing from 1 October 2022. This delayed effective date will apply to the following Awards only:
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.
Inflation and rising cost of living was cited as key economic indicator for consideration this year, with President Iain Ross stating “the sharp rise in inflation impacts business and workers. The cost of business inputs increases which, depending on the capacity to pass on those costs, adversely impacts profitability. Inflation erodes the real value of workers’ wages and reduces their living standards. The low paid are particularly vulnerable in the context of rising inflation.”
President Ross said that the increase will “protect the real value of the wages of the lowest-paid workers” and provide them with “greater relief” while seeking to constrain inflationary pressures.
Pay summaries have not yet been updated by Fair Work, but we will distribute them to our clients once they are released.
If you are unsure as to which Modern Award covers your employees, or you want to clarify the correct rates of pay that your employees are entitled to, please reach out to our team to discuss – Nikki Jenkinson, 0472 545 584 or nikki@commongoalconsulting.com.au.
