Alert – Wage Increases!

On 15 June 2022, the Fair Work Commission (FWC) announced the Annual Wage Review 2021-2022 Decision.

If you are unsure as to how to apply these increases to your business, you may reach out to the Workplace Relations team at Constructive Legal Solutions via admin@constructivelegalsolutions.com.au or on 1300 972 092

1. The Increases

This year there is a split increase:

• The National Minimum Wage will increase by $40 for the week which equates to an increase of 5.2%.
• For All Modern Awards, a 4.6% wage increase will apply or an increase of $40 per week (whichever is higher).

This increase will apply on the first full pay period commencing on or after 1 July 2022 for all Modern Awards in line with the 0.5% increase to the superannuation guarantee rate. However, there are 10 Modern Awards that will only have their increases come into effect from 1 October 2022. These are the:

• 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.

2. Applying it to your business

The Fair Work Commission still has to make Determinations on the application of the Decision to pay rates and allowances in each Award. It is expected the Determinations will be finalised by late June. At this point your business can start working on your payroll systems to apply the changes.

3. What does this mean for you?

a) If your business is covered by modern awards or have employees receiving payments based on the National Minimum Wage, you will need to review your arrangements to ensure that employees are paid correctly.

b) If your business has an Enterprise Agreement in place, and it refers to either the relevant Modern Award or the Annual Wage Review in its wage setting mechanism, your rates of pay may be affected by this increase.

c) If your business pays above and beyond the minimum rates, you may be able to absorb the 4.6% increase into the existing rates.

d) If your business has employees to whom you pay all-inclusive salaries, you must review their salary packages to ensure that it is still adequate to compensate them for their award entitlements.

If you are unsure as to how to apply these increases to your business, you may reach out to the Workplace Relations team at Constructive Legal Solutions via admin@constructivelegalsolutions.com.au or on 1300 972 092