As part of its annual review of the National Minimum Wage, the Fair Work Commission has announced that the National Minimum Wage will be increased by 5.2%. As a result, the National Minimum Wage will be $812.60 per week or $21.38 per hour for a 38 hour week.

Modern award minimum wages will be increased by 4.6%, subject to a minimum increase for adult award classifications of $40 per week, based on a 38-hour week for a full-time employee. In other words:

  • modern award minimum wage rates above $869.60 per week will receive a 4.6% adjustment;
  • wage rates below $869.60 per week will be adjusted by a flat $40 per week.

This increase to the National Minimum Wage and modern award minimum wages are to operate from 1 July 2022. However, for the following modern awards in the aviation, tourism and hospitality sectors, the increase will operate 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 Commission noted that the key differences in economic indicators between last year and this year include the sharp increase in cost of living and the strengthening of the labour market.

A copy of the full decision is available here.

Employers will need to ensure that their employees covered by awards are paid at least the minimum wage in their award, even if an enterprise agreement applies to them.