New Wage Rates

4 July

Employers should note that the Fair Work Commission (FWC) handed down the 2022 Annual Wages Review Decision on 15 June 2022.

This decision granted a 5.2% increase to the national minimum wage and a 4.6%, or a minimum of $40 per week, increase to modern award minimum wages.

The result of this decision is that the weekly national minimum wage will increase by $40 to $812.60 per week and the hourly minimum wage will increase by $1.05 to $21.38 per hour.

For employers who have employees being paid minimum wages under a modern award, the pay will increase in accordance with the decision of FWC and will apply from 1 July 2022.

Other award wages, including junior, apprentice and supported wages that are based on adult minimum wages, will get a proportionate increase.

Further, the Fair Work Act 2009 provides that wages that are paid under an Enterprise Agreement (EA) cannot be less than those of a modern award.

Therefore, employers who have employees covered by an EA should review their EA rates against the new modern award rates and where necessary consult with any relevant unions and employees to determine whether there are any rates that require adjustment.

A link the Fair Work Ombudsman (FWO) media release reminder notice can be found by clicking on this link (https://www.fairwork.gov.au/newsroom/media-releases/2022-media-releases/july-2022/20220701-annual-wage-review-2022-media-release).

If there are any queries, please do not hesitate to contact the Workplace Relations team at Harwood Andrews.

Article prepared by:

Jim Babalis
Special Counsel
T 03 5225 5205
E jbabalis@ha.legal

Jim Rutherford
Principal Lawyer
T 03 5226 8579
E: jrutherford@ha.legal