Minimum Wage Increase 2022

The Engaged Space - Minimum Wage Update 2022

The Australian minimum wage has increased by 5.2%. Are you paying your employees correctly?

Following yesterday’s Annual Wage Review, the Fair Work Commission has made two important 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.

This decision means that the new National Minimum Wage will rise to $812.60 per week, an increase from $20.33 to 21.38 per hour.

When does it take effect?

These changes will come into effect on July 1, 2022 for most industries. 

For some awards in the aviation, hospitality and tourism industries, the increase will happen from 1 October 2022. The affected awards are:

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

What can I do to prepare?

Employers need to carefully review their arrangements and implement the necessary wage increases to ensure they are satisfying minimum wage rates in line with the modern award. 

You can use Find My Award if you’re not sure which award applies to your industry.

For more information and to keep up to date with updates as they happen, refer to the Fair Work Ombudsman website.

Our team is here to help you navigate through these changes! Reach out if you need advice on your minimum pay obligations, penalty rates or superannuation contributions.

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