The Fair Work Commission has announced a 2.5% increase to the National Minimum Wage.
Australia’s labour safety net comprises three distinct aspects:
- The Minimum Wage;
- The National Employment Standards; and
- The Modern Award System.
Modern Awards are set by reference to the Minimum Wage each year and the minimum rates in Modern Awards are increased by the percentage increase to the Minimum Wage.
Unlike most years where increases apply from the first full pay period starting on or after 1 July, due to the economic impact of the coronavirus pandemic, increases to minimum rates in Modern Awards will start on 3 different dates, similar to the approach last year.
Whilst the 2.5% increase will apply to most Modern Awards from the first full pay period starting on or after 1 July 2021, depending on which industry your business is in and which Modern Award applies to your employees, the 2.5% increase will apply from the first full pay period starting on or after the following dates:
- From 1 July 2021
- Most industries and awards (not listed below)
- From 1 September 2021
- General Retail Industry Award 2020
- From 1 November 2021
- Air Pilots Award 2020
- Aircraft Cabin Crew Award 2020
- Airline Operations – Ground Staff Award 2020
- Airport Employees Award 2020
- Airservices Australia Enterprise Award 2016
- 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
For anyone not covered by a Modern Award, from the first full pay period starting on or after 1 July 2021 the Minimum Wage will be:
|Minimum Wage per hour||Minimum Wage per week|
If you employ employees who are covered by a Modern Award, you should review your salaries or wages in line with the increases to the relevant award to ensure that you are paying equal to or above the new minimum rates, particularly if an employee is paid a salary or wage which incorporates allowances or anticipated overtime etc.
An employer is not obliged to increase an employee’s salary or wage if they are already getting paid more than the new applicable minimum rates.
Some penalty rates and allowances in Modern Awards will also be increased so you should ensure that you check your applicable award for any increases other than the new minimum rates.
Should you wish to discuss wage increases or wish to take this opportunity to review your employees’ salaries or wages, or simply have your contracts reviewed, please contact Matt Bell, Suzanne Wishart or Chris Lowe on 1300 068 736.
This publication has been carefully prepared, but it has been written in brief and general terms and should be viewed as broad guidance only. It does not purport to be comprehensive or to render advice. No one should rely on the information contained in this publication without first obtaining professional advice relevant to their own specific situation.