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The Fair Work Commission announced a 5.2% National Minimum Wage increase for FY22/23

Authors:  Chao Ni, Principal & James Sanders, Senior Associate

The Fair Work Commission minimum wage panel decision of 15 June 2022 announced a 5.2% increase to the National Minimum Wage.

The decision lifts the national minimum wage from $20.33 per hour ($772.60 per week) to $21.38 per hour ($812.60 per week) from 1 July 2022.

Modern award minimum wages will be increased by 4.6% subject to a minimum increase for adult award classifications of $40 per week.

Award wage rates currently above $869.60 per week will increase by 4.6%.

Award wage rates currently below $869.60 per week will increase by $40 per week.

The modern award minimum wage increase will operate from 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.

The modern award minimum wage increase will operate from 1 July 2022 for all other awards not listed above.

Businesses covered by a Registered Agreement

Businesses that are party to a registered agreement (e.g. certified agreement, collective agreement, enterprise agreement, AWA or ITEA) must ensure that the base rates of pay provided under that agreement meet or exceed new minimum base rates of pay under the relevant underpinning modern award.

Due to the rolling nature of the increases, the rates in the agreement may need to increase at different times based on the applicable underpinning modern award for the covered positions.

Award Covered Employers

Businesses that are not party to a registered agreement will be covered by modern award rates of pay. The increase to minimum rates of pay will also flow through to penalty rates and overtime loadings payable under the relevant modern award.

Confused? Need help?

MST Lawyers offers an Annual Updater Service to provide businesses with a summary of minimum wage rates that apply in the 2022/23 financial year.

Businesses that register for the Annual Updater Service will be provided a summary of new minimum wage rates for each job classification contained in the relevant modern award or, if applicable, in its registered workplace agreement.

To register for the Annual Wage Updater service, please complete the Annual Wage Updater Registration Form which details the fixed fee cost associated with the update.

For more information, please contact our Workplace Law Team by email on workplace@mst.com.au or by phone on +61 8540 0200.