Increases to National Minimum Wage, Modern Award Rates & Employer Superannuation Contributions

The Fair Work Commission (FWC) has today handed down the Annual Wage Review 2021-22 decision, to increase the National Minimum Wage and Modern Award Rates of Pay.

National Minimum Wage Increase: The National Minimum Wage will increase by $40 per week, which amounts to a 5.2% increase from 1 July 2022. The new National Minimum Wage will be $812.60 per week, or $21.38 per hour.

Modern Award Rates Increases: The Modern Award minimum rates of pay will increase by 4.6% to be implemented on a 2 stage basis, depending on the Modern Award, allowing for a delayed operative date for Modern Awards in the aviation, tourism and hospitality sectors, subject to a minimum $40 per week increase for workers on Modern Award rates of pay below $869.60 per week. Guidance from the FWC indicates that in most Modern Awards, the effect of the decision is that the 4.6% increase will apply from around classification level C10 or trade level and above, and the flat $40 per week increase will apply to the lower classification levels. This provides a proportionately higher increase to low-paid workers.

Increases from 1 July 2022

All other Modern Awards not listed below.

Increases 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

The draft variation determinations for the Modern Awards will be published by the FWC next week.

We expect the Fair Work Ombudsman (FWO) will release the updated Pay Guides with the increased rates of pay for each Modern Award closer to 1 July 2022, so we have included a link to the FWO Pay Guides here so you can check the increased Modern Award rates as they are updated in the coming weeks.

Employer Superannuation Contributions

In addition to the above increases, Employer Superannuation Contributions will also increase from 10% to 10.5% from 1 July 2022. The Employer Superannuation Contribution rate will continue to increase annually by 0.5% until it reaches 12% in 2025.

If you have any questions about the impact of these changes on your business, or how they operate in relation to your Employment Agreements and/or Enterprise Bargaining Agreements in place, please contact IR Legal Solutions directly to discuss. It is important that businesses ensure they implement these increases as required.