New Changes to Wages – increases to the minimum wage

On Wednesday, the Fair Work Commission (FWC) announced new changes to the minimum wage and award rates for the upcoming financial year. The recent changes are as follows:  

  1. The minimum wage has been increased by 2.5%and will now be $772.60 per week, or $20.33 an hour. This means there is a $18.80 increase to the weekly wage.  
  2. The modern award minimum rate will also increase by 2.5%. However, like last year, the increase to wages will be staggered based on the employer’s industry. In making the decision, the FWC looked at the recovery of each sector through the pandemic and whether there had been recent wage changes in the sector. Unless mentioned otherwise, the award rate changes come into effect on 1 July 2021. Below is a table with a summary of industries and the date that changes come into effect.  
Summary of operative dates 

Transport, postal and warehousing sector   

(Excluding the Aviation and Tourism Awards) 

1 July 2021 

Aviation and Tourism Awards   

1 November 2021 

Accommodation and Food Services sector  

 (Excluding the Fast Food Industry Award)  

1 November 2021 

Fast Food Industry Award 2010  

1 July 2021 

Arts and Recreation Services sector  

(Excluding Horse and Greyhound Training Award) 

1 November 2021 

Horse and Greyhound Training Award 2020 

1 July 2021 

Retail Trade Sector   

  • Dry Cleaning and Laundry 
  • Hair and Beauty 
  • Mannequins and Models  
  • Nursery  

1 November 2021 

Vehicle Repair, Services and Retail Award 2020 

1 July 2021 

Commercial Sales Award 2020 

1 July 2021 

General Retail Industry Award 2020 

1 September 2021 

All Remaining Awards  

1 July 2021 

 

What does this mean for you?  

The first thing to check is what sector your industry award falls into. The start date for the new award rates will be determined by this. If you want to look for your specific award and start date, you can check page 14 of the FWC’s decision. This will tell you whether the changes have a delayed start or is effective from 1 July 2021.  

These changes are also occurring with new changes to superannuation. See more here.

You should be reviewing your payroll and making sure everything is up to date. This may include checking that you’re prepared to increase minimum wages from 1 July if needed and making sure that the super contributions are set to 10%.  

Of course, if you need any support in knowing what the new changes might mean for you – let us know! We’re here to chat through any questions you may have and what this might mean for your business and workforce.  

 

Susanna Ritchie

Susanna Ritchie

Susanna is a Director at Workplace Wizards. Susanna has over a decade of experience in providing advice, training and support to clients in both private and government practice as well as conducting litigation in courts and tribunals.

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