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Fair Work Annual Wage Review 2021-2022 Decision

On Wednesday 15 June 2022 the Fair Work Commission handed down its Annual Wage Review 2021 – 2022 decision.

From 1 July 2022, the minimum wage will increase by $40 (which amounts to an increase of 5.2 percent) to $812.60 per week or $21.38 per hour.

Modern award wages will be increased by 4.6 percent subject to a minimum increase for adult award classifications of $40, rounded to the nearest 10 cents.  In effect, modern award minimum wage rates above $869.60 per week will receive a 4.6 per cent adjustment, wage rates below $869.60 per week will be adjusted by $40 per week.

Whilst for most modern awards the increase will take effect from 1 July 2022, there are a number of modern awards where the increase will be delayed until 1 October 2022, please see below.

Under the Fair Work Act 2009 (Cth), employers must pay their employees the minimum wage under the applicable modern award, and as such will need to pass on the pay increases in accordance with the decision.  This also includes those employees covered by Agreements where those rates fall below the new minimum wage.

If employers pay their employees above the minimum wage, they may be able to absorb some or all of the increase, but this may depend on contractual arrangements.

Please note, that employees covered by the Social, Community, Home Care and Disability Services Industry Award 2010 were subject to the Equal Remuneration Decision and the annual wage increase will need to be applied on top of these rates.

Please contact Naomi Boyle at WPL on 9972 4950 or at nboyle@workplacelegal.com.au for assistance to ensure that you are paying your employees the minimum wage.

Increase in modern award wages that will come into operation on 1 October 2022:

  • Aircraft Cabin Crew Award 2020;
  • Airline Operations – Ground Staff Award 2020;
  • Airline 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;

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