The Fair Work Commission have ordered a 5.2% increase to the National Minimum Wage citing strong labour market performance and a sharp increase in cost of living pressures including rising inflation as key factors in their decision.
Modern Award minimum rates will also increase by 4.6% subject to a minimum increase of $40 per week.
Modern Award rates above $869.60 per week will increase by 4.6%. Modern Award rates below $869.60 pr week will increase by $40 per week.
The changes take effect from 1 July 2022 with limited exceptions for some industries (aviation, tourism, and hospitality) hardest hit by the commercial impact of COVID-19 (these take effect from 1 October 2022 instead).
These changes mean the time to review your employee wages arrangements including employment contracts is now – please reach out to us for assistance regarding the changes and what your business needs to do to be compliant by 1 July 2022.
