A Message From Our Managing Director
The Fair Work Commission has made a determination that modern award wages above below $869.60 will increase by $40 per week – so roughly between 4.6% to 5.2% depending on the current weekly rate – while modern award wages above $869.60 per week are to be increased by 4.6%.
“The majority of wage increases will occur on 1 July 2022 (except the aviation, tourism and hospitality industries which will have the increases deferred until 1 October 2022).”Bel Beltz MD The BelRose Group
The decision directly affects employees engaged under modern awards and can influence the minimum wages payable to employees engaged under enterprise agreements.
- a $40 increase to the National Minimum Wage, which amounts to an increase of 5.2%
- a 4.6% increase to minimum award wages, which is subject to a minimum increase to adult award classifications of $40 per week (based on a 38-hour week for a full-time employee).
Employers engaging workers under an award need to make adjustments NOW retrospect to 1st July 2022.
What does this mean for annualised workers?
If you have an employee engaged on an annualised salary (or all-inclusive/leveled rate) then you will need to ensure they are earning what they would be paid as per the relevant award. It is a misconception to presume that because an employee is on an annualised salary they are not entitled to minimum wage increases (and overtime). Annualised salaries are simply an annualising wage arrangement and salaries should include conservative provisions for overtime if it’s expected.
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Should you require assistance to ensure your employees are being paid correctly please reach out!