The Fair Work Commission announces a 2.5% minimum wage increase for FY21/22

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

The Fair Work Commission minimum wage panel decision of 16 June 2021 announced a 2.5% increase to the National Minimum Wage.

The decision lifts the national weekly minimum wage from $19.84 per hour ($753.80 per week) to $20.33 per hour ($772.60 per week).

Modern awards will also see a commensurate increase, however this will be applied to modern awards on one of the following three dates, based on which group the modern award is located:

Group 1: 1 July 2021;

Group 2: 1 September 2021; and

Group 3: 1 November 2021.

Details regarding the three groups of modern awards can be found here.

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 2021/22 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 find information  relating to the fixed fee cost associated with the update, together with the registration form.

For more information, please contact us today by  email or by phone +61 3 8540 0200.