On 15 June 2022, the Fair Work Commission announced the results of its annual wage review for the national minimum wage and modern award minimum wages. Here is the basic breakdown.
FWC announces 5.2% ($40.00 per week) minimum wage increase
Summary Breakdown
> Increase to $812.60 per week
> Increase to $21.38 per hour
The national minimum wage will increase from $20.33 to $21.38 per hour or from $772.60 to $812.60 per week, an increase of 5.2%.
Modern award minimum wages will have a lower increase of 4.6% (subject to a minimum increase of $40.00 per week).
Award wage rates ABOVE $869.60 per week will increase by 4.6%
Award wage rates BELOW $869.60 per week will increase by $40 per week.
Some award increased delayed until October
As seen last year, some increases will take effect throughout the year, not on the 1st of July 22.
The increase to minimum rates will be delayed for employees covered by the following modern awards:
- 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; and
- Restaurant Industry Award 2020.
The increase for these awards will be effective from 1 October 2022.
For more information, see the Annual wage review website, or watch the video below.
Superannuation increases
We must not forget about the scheduled super increase scheduled for the first of July.
The superannuation guarantee rate will also increase to 10.5% and employees will no longer be required to earn $450 per month to become eligible for superannuation.
Summary of changes include:
- the superannuation guarantee rate will increase from 10% to 10.5%;
- the maximum super contribution base will increase from $235,680 to $240,880; and
- employees will no longer need to earn at least $450 per month before becoming entitled to superannuation. All employees, regardless of how much they earn will be entitled to compulsory superannuation guarantee contributions.
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