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Increases to National Minimum Wage, Modern Award Rates of Pay and Superannuation



The Fair Work Commission (FWC) has handed down the Annual Wage Review 2020–21 decision this afternoon to increase the National Minimum Wage.


National Minimum Wage Increase: The National Minimum Wage will increase by 2.5% from 1 July 2021. The new National Minimum Wage will be $772.60 per week, or $20.33 per hour.


Modern Award Rate Increases: The Modern Award minimum wage rates will also increase by 2.5% on a staggered basis over 3 stages (depending on the Award) to factor in exceptional circumstances in the aviation, tourism, fitness and retail trade industries, as follows:


From 1 July 2021

All other Modern Awards not listed below


From 1 September 2021

General Retail Industry Award 2020


From 1 November 2021

Air Pilots Award 2020

Aircraft Cabin Crew Award 2020

Airline Operations – Ground Staff Award 2020

Airport Employees Award 2020

Airservices Australia Enterprise Award 2016

Alpine Resorts Award 2020

Amusement, Events and Recreation Award 2020

Dry Cleaning and Laundry Industry Award 2020

Fitness Industry Award 2020

Hair and Beauty Industry Award 2010

Hospitality Industry (General) Award 2020

Live Performance Award 2020

Mannequins and Models Award 2020

Marine Tourism and Charter Vessels Award 2020

Nursery Award 2020

Racing Clubs Events Award 2020

Racing Industry Ground Maintenance Award 2020

Registered and Licensed Clubs Award 2020

Restaurant Industry Award 2020

Sporting Organisations Award 2020

Travelling Shows Award 2020

Wine Industry Award 2020


The draft variation determinations for the Modern Awards will be issued by next Thursday, 24 June 2021.


We expect the Fair Work Ombudsman will also release the updated Pay Guides with the rates of pay for each Award closer to 1 July 2021, so we have included a link to the FWO website you can check here.


Employer Superannuation Contribution Increases


Employer superannuation contributions will also increase from 9.5% to 10% from 1 July 2021. The employer superannuation contribution rate will continue to increase annually by 0.5% until it reaches 12% in 2025. The FWC has indicated that it has taken this into account in the Annual Wage Review decision.


We will also be providing updates on our Blog – The Workplace Collective as the Modern Awards and Pay Guides are released.


If you have any questions about the impact of these changes on your business, please contact IR Legal Solutions directly to discuss.