The Fair Work Commission has this week handed down their decision in relation to minimum wage increases.
From 1 July 2022, wages will increase as follows:
- Min wage for award-free employees will be $21.38 per hour or $812.60 per week (an increase of 5.2%)
- Min award rates for award-covered employees will increase by 4.6% for individuals who earn at least $869.60 per week. For those who earn below this, their wage will increase by $40 per week.
These increases will be delayed until 1 October 2022 for a small group of awards (including the Hospitality Industry [General] Award 2020 and Restaurant Industry Award 2020).
It’s time to update your pay practices – and don’t forget to check employees on annualised salaries. With such a large award increase, annualised salaries may no longer cover award entitlements.
Also, when considering salary reviews for your employees, you will need to take into account the employee super payments increasing from 10% to 10.5% from 1 July 2022.
Please contact our office on 03 6231 3448 and speak with one of our expert accountants if you need any assistance with this.