The Fair Work Commission has released their decision to increase the national minimum wage.
Each financial year the Fair Work Commission reviews the national minimum wage.
The panel assesses the changes in data from year to year and considers the economic impact of any minimum wage increase.
Of note in this review is that the unemployment rate has decreased since last year’s review; now standing at 3.9%.
However, as has been wildly publicised in recent times, there has also been a sharp rise in the cost of living with CPI increasing from 1.1% at last year’s review to the current 5.1%. These changes in the economic environment weighed heavily in the Commission’s decision to increase the minimum wage.
The minimum wage will be increased by $40 per week, which represents a 5.2% increase. This results in the new weekly minimum wage being $812.60, or $21.38 per hour.
Modern award minimum wages are to increase by 4.6%, subject to that resulting in an increase of $40 per week.
The increase will apply for most awards from 1 July 2022, with some exceptions.
There will be a delayed operative date of 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.
If you have any queries on the wage review, please contact our Employment and Workplace Relations team.
Thank you to Katie Draper, lawyer in our team for assisting with this update.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.