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Minimum Wage Review 2022

minimum wage

Every year the Fair Work Commission (FWC) reviews the national minimum wage and minimum wage rates provided in Modern Awards.

Any increases to Modern Award wage rates potentially affect employees whose employment is governed by an Enterprise Agreement, as all Enterprise Agreements must provide for entitlements that are “better off overall” than any applicable Modern Award. Many Enterprise Agreements tie annual wage increases to the increase granted by the FWC while others may anticipate the likely annual increases throughout the life of the Agreement.

From 1 July 2022 the FWC increased the national minimum wage by 5.2%.

Accordingly, for those permanent employees who are not covered by a Modern Award or Enterprise Agreement, from 1 July 2022 the adult national minimum rate will increase to $21.38 per hour or $812.60 per week for a full time employee.
For casual employees who are not covered by a Modern Award or Enterprise Agreement, the minimum adult hourly rate is 125% of the permanent hourly rate, or $26.72 per hour.

Every employee in Australia who is not covered by a modern award or enterprise agreement is entitled to be paid at least this rate - $21.38 per hour for adult permanent employees or $26.72 for adult casual employees.

In addition, the FWC provided for an increase of at least 4.6% for workers covered by Modern Awards. Over the coming months, Modern Awards will be amended to pass on these increases. For most employees these increases will apply from 1 July 2022 although workers within a number of sectors, including aviation, tourism and hospitality, will have to wait until 1 October for an increase. The FWC factored in this delay to compensate for the continuing economic effects of the COVID-19 pandemic.

It is the employer's responsibility to implement these wage increases. However, it can take some time before the increased rates come into effect. If the increase is delayed, it must be backpaid to 1 July 2022 (except in those industries referred to above, for which the FWC allowed the delayed increase).

If you believe that your employer is not paying you the appropriate rate of pay, you can contact our employment law team who can assist you.

This article has been written by Lily Mackereth and Margaret Kaukas. 

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Get in touch with today's blog writer:
Margaret Kaukas

Special Counsel in Employment Law

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