Award rates to increase by 2.5%

The Fair Work Commission recently completed its annual review of wages for Australian workers, reaching a unanimous decision to increase all Award rates by 2.5%, bringing the national minimum wage to $772.60 per week. Similar to last year, the increase will be delayed for sectors most impacted by COVID-19.

Workers covered by the General Retail Award 2020 will not see the increase until 1 September 2021 and those covered by the following Awards will need to wait until 1 November 2021:

• Air Pilots Award 2020
• Aircraft Cabin Crew Award 2020
• Airline Operations – Ground Staff Award 2020
• Airport Employees Award 2020
• Airservices Australia Enterprise Award 2016
• Alpine Resorts Award 2020
• Amusement, Events and Recreation Award 2020
• Dry Cleaning and Laundry Industry Award 2020
• Fitness Industry Award 2020
• Hair and Beauty Industry Award 2010
• Hospitality Industry (General) Award 2020
• Live Performance Award 2020
• Mannequins and Models Award 2020
• Marine Tourism and Charter Vessels Award 2020
• Nursery Award 2020
• Racing Clubs Events Award 2020
• Racing Industry Ground Maintenance Award 2020
• Registered and Licensed Clubs Award 2020
• Restaurant Industry Award 2020
• Sporting Organisations Award 2020
• Travelling Shows Award 2020
• Wine Industry Award 2020.

For all other modern Awards, the increase comes into effect from 1 July 2021.

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.