2020-21 Annual Wage Review – Decision Issued
On 16 June 2021, the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling, providing wage increases for most award-covered employees from 1 July 2021.
If you’re seeking confirmation of the increase awarded via the 2021-22 Annual Wage Review, applicable to most award-covered employees from 1 July 2022, see our related article.
Despite acknowledging the extraordinary economic impact of the COVID-19 pandemic which continues to be felt, a Full Bench of the FWC has determined that a wage increase is appropriate, granting an increase of 2.5% to Modern Award minimum wages. The size of this increase is surprising in the current economic circumstances, especially when accompanied by the increase in compulsory superannuation (to 10%) which also takes effect from 1 July 2021.
Largely abandoning the strategy adopted in 2020 wherein the Modern Awards were separated into three groups with the increase staggered across differing operative dates of July 2020, November 2020 & February 2021, the increase will flow into the majority of Modern Awards from the first pay period commencing (ppc) on or after 1 July 2021.
The National Minimum Wage will subsequently increase to $772.60 per week ($20.33 per hour) from ppc 1 July 2021.
Delayed application for limited number of Modern Awards:
Small respite has been extended to employers captured by the General Retail Industry Award 2020 which will not be subject to the 2.5% increase until ppc 1 September 2021.
Furthermore, the following awards applicable within the sectors most impacted by the COVID-19 pandemic will not be subject to the 2.5% increase until ppc 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.
All Modern Awards not expressly referenced above will be subject to the 2.5% increase from ppc 1 July 2021.