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As well as the super guarantee increase to 10.5% on 1 July 2022, employers now need to factor in a wage increase. Read more below.
National Minimum Wage Increase
The Fair Work Commission (FWC) has ordered a 5.2% wage increase to the national minimum wage (NMW). From 1 July 2022, the NMW will increase by 5.2%, which amounts to $40 a week. The new National Minimum Wage will be $812.60 per week or $21.38 per hour.
Award Minimum Wage Increase
The FWC has announced that minimum award wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee. This means minimum award wages above $869.60 per week, will get a 4.6% increase and below $869.60 per week, will get a $40 increase.
When to Apply the Increase
The new National Minimum Wage will apply from the first full pay period on or after 1 July 2022. This means if you have a weekly pay period that starts on Mondays, the new rates will apply from Monday 4 July 2022.
If you are covered by an award, award increases happen in 2 stages. Most awards will increase from the first full pay period on or after 1 July 2022 but, for some awards as listed below, the increase will happen from 1 October 2022.
- 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
These awards relate to industries that are considered to be still adversely impacted by the COVID-19 pandemic.
To read more information about the wage increase go to this Fair Work web page.