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.