On 15 June 2022, the Fair Work Commission ordered a 5.2% wage increase to the national minimum wage. The new national minimum wage will be $812.60 per week or $21.38 per hour, an increase of $40.00 per week or $1.05 per hour.

For employees covered by a modern award, the Commission ordered a 4.6% increase to minimum award wages. The minimum weekly increase for a full-time employee will be $40 a week (or $1.05 per hour) or 4.6%, whichever is higher.

For employees covered by the following awards, the changes will take effect from the first full pay period on or after 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 which are considered to be still adversely impacted by the COVID-19 pandemic.

In all other cases, the changes will take effect from the first full pay period on or after 1 July 2022.

For in-house admin/bookkeepers charged with managing payroll, it will be important to promptly review employee rates of pay in order to:

Identify employees that are currently paid the national minimum wage or a minimum Award wage, and then determine:

  1. What their new rate of pay will be following the changes; and
  2. Whether the changes will come into effect on 1 July 2022 or 1 October 2022.

Identify employees that are currently paid above the national minimum wage or a minimum award wage and then review these rates of pay to ensure they will be high enough to cover the slated increase.

If you need assistance the DynamicFM team is here to help!

Contact us at solutions@dynamicFM.net.au