Prepare Your Business For The National Minimum Wage Rise

The Fair Work Commission’s Expert Panel announced a 5.2% increase to the national minimum wage, the highest wage increase since 2006. This comes after the 2021/2022 wage review and the need to align wages with the rise in inflation and cost of living and a focus on providing a proportionately greater level of support to lower paid workers.

From 1 July 2022, the national minimum wage will increase to $21.38 an hour, an increase of around $40 a week which will bring the minimum weekly wage to $812.60. 

The rise extends to the minimum wage in modern awards with the Expert Panel making a decision to increase modern award minimum wages by 4.6% or by $40 per week depending on the employee’s classification. 

Big Changes To The Minimum Wage

While the increase will commence on the 1st of July for most awards, changes won’t apply until the 1st of October for some in the Aviation, Tourism and Hospitality industries. You can view the full list here.

Changes to the minimum wage are summarised below:

Getting Ready For The Rise 

The new National Minimum Wage will apply from the first full pay period on or after 01 July 2022. As an employer, it’s important that you adhere to the provisions of your award and pay your employees at least the minimum pay rate of pay for their Award classification. 

To help you get ready, Fair Work is publishing new Wage Guides to help businesses understand the impacts to their award and the minimum rates they should be paying their employees for their Award classification. These can be accessed through the Fair Work website.

Employers who pay ‘above Award’ or an annualised salary for example, continue to be required to make sure that the rate of pay meets all of the obligations or entitlements specific to that Award and after these increases have been applied.

We understand that this can be complex. Reach us here to make sure your business is ready come July 1.