The Fair Work Commission handed down its much anticipated Annual Wage Review Decision.
Numerous submissions were made to the Annual Wage Review, including by the Australian Council of Trade Unions (ACTU) which proposed a 5.2% increase and by a number of employer bodies who had proposed between 2.5 and 3% increases.
Taking into consideration economic indicators such as rising inflation, sharp increases in the cost of living and a strong labour market, the Fair Work Commission has decided to increase wages as follows:
- The national minimum wage will be increased by 5.2%, bringing the national minimum wage to $812.60 per week or $21.38 per hour.
- Wages under all modern awards will increase by 4.6% subject to a minimum increase for adult award classifications of $40/week. In effect, modern Award rates above $869.60/week will increase by 4.6% and wages below $869.60/week will be adjusted by $40/week.
In terms of timing of the Award increases, the Panel recognised the need to take into account the exceptional circumstances relevant to the aviation, tourism and hospitality sector and the need for some breathing space prior to wage increases, and has determined that the increase will be effective from 1 October 2022 for the following 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
- Restaurant Industry Award 2020.
For all other modern Award, the 4.6% or $40/week increase will take effect from the first full pay period after 1 July 2022.
Cecilia White, HR Consulting Director of Perks People Solutions, encourages all employers to note these increases and ensure that those employees paid on Award or slightly over Award are paid in line with the increased rates.
“It’s important for business owners to be aware of which group their Award or minimum wage employees fall into and to keep a close eye on their payroll over coming months to ensure they aren’t caught out by these changes.”
“Most business owners are honest – the last thing they want is to underpay their employees and the penalties for non-compliance are severe,” she says.
“With the Fair Work Ombudsman’s increasing focus on uncovering cases wage theft a comprehensive payroll audit will provide reassurance that you are compliant and haven’t missed anything in your systems or processes.”
If you have any questions regarding employment and HR or would like to conduct a payroll audit in your business, contact Cecilia White and the team at Perks People Solutions.
