The Fair Work Commission announced the 2021 minimum wage review outcome at 3:30pm today, 16th June.

The key points are as follows:

  • 2.5% increase
  • National Minimum Wage will be $772.60 per week or $20.33 per hour
  • Amounts to an increase of $18.80 per week
  • Modern Award Minimum Wages will also be increased by 2.5%

Timing:

The increase is to operate from 1 July, with the exception of the Awards listed below which have been delayed due to exceptional circumstances.

The aviation, tourism, fitness and certain retail trade sectors have been identified as facing exceptional circumstances.  Because of this, the following Awards will receive the increase from 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

The increase will take effect for the General Retail Industry Award 2020 from 1 September, 2021.

If your Award is not listed above, it means the increase will apply from 1 July 2021.

What this means for business:

Things that all businesses need to action:

  1. Review your rate of pay to ensure compliance with the new minimum rates – even if you already pay above Award rates, have employees on all up hourly rates or salaries, or employees under Agreements, you still have an obligation to ensure compliance with the new minimum rates.
  2. Be ready to implement new rates as of the first full pay period after 1 July.
  3. Remember also that the Superannuation guarantee increases to 10% from 1 July 2021 (for all employees, regardless of Award coverage).

But before you rush in … Fair Work will spend the next few weeks releasing the updated figures for each of the Modern Awards.  This may include increases in allowance amounts.  So it is good to be prepared and budgeted for the 2.5% increase, however if the Awards apply to your team, we recommend waiting until those Award-specific figures are available to save double work.

If you need assistance with your wage compliance checking, we are ready to help.  Please contact us ASAP so that we can include you in our 1 July wage compliance checks.

The summary of the decision for the Annual Wage Review 2020-21 can be found here: