Dinner in Restaurant

Minimum wage increases announced

This week, the Fair Work Commission is reminding all employers the new national minimum wage increases announced on 15 June 2022 are now effective.


From 1 July 2022, wages will increase as follows:

  • The minimum wage for award-free employees will be $21.38 per hour or $812.60 per week (an increase of 5.2%)

  • Minimum award rates for award-covered employees will increase by 4.6% for individuals who earn at least $869.60 per week. Those who earn below this will increase their wage by $40 per week.

For a small group of awards (including the Hospitality Industry (General) Award 2020 and Restaurant Industry Award 2020), these increases will be delayed until 1 October 2022. Click here for a list of these awards.


Action:

It's time to update your pay practices - and don't forget to check employees on annualised salaries. With such a significant award increase, annualised salaries may no longer cover award entitlements.


Also, when considering salary reviews for your employees, you will need to consider the new employee superannuation payments, increasing from 10% to 10.5% effective 1 July 2022.


If you need help, please contact our office on 1300 937 724 and speak with one of our experts.


Source: Fair Work Ombudsman

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