Minimum Wage Changes

Get set for a minimum wage increase

Following its Annual Wage Review 2021-22 , the Fair Work Commission (FWC) has made 2 announcements:

the National Minimum Wage will increase by 5.2%, which amounts to $40 a week
award minimum wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.

National Minimum Wage increase

The National Minimum Wage applies to employees not covered by an award or registered agreement.
From 1 July 2022, the National Minimum Wage will increase by 5.2%, which amounts to $40 a week. The new National Minimum Wage will be $812.60 per week or $21.38 per hour.

Award minimum wage increase

Most employees are covered by an award. Awards are legal documents that outline the minimum pay rates and conditions of employment. If you’re not sure which award applies to you, use Find my award.

The FWC has announced that minimum award wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.

This means minimum award wages:

above $869.60 per week, will get a 4.6% increase
below $869.60 per week, will get a $40 increase.

Agreements

If you’re covered by a registered agreement (ie like an EBA), the minimum wage increase may apply. This is because the base pay rate in a registered agreement can’t be less than the base pay rate in the relevant award.

National Minimum Wage

The new National Minimum Wage will apply from the first full pay period on or after 1 July 2022. This means if you have a weekly pay period that starts on Mondays, the new rates will apply from Monday 4 July 2022.