2021-22 Annual Wage Review Decision

The Fair Work Commission (FWC) has awarded an increase of 5.2% to the national minimum wage which will take the rate to $812.60 per week or $21.38 per hour. Minimum award wages will also increase by $40 per week for those rates under $869.60 per week. For minimum award wages over $869.60, a 4.6% increase will apply.

The national minimum wage and minimum award wages will increase from the first full pay period commencing (ppc) on or after 1 July 2022 except for some awards in the aviation, tourism and hospitality sectors which will receive a delayed increase effective from the first full pay period commencing (ppc) on or after 1 October 2022.

In delivering this year’s decision, the Minimum Wage Panel observed that granting a “proportionately higher increase” to the lowest paid award classifications would target the “particularly vulnerable” and “protect the real value of wages of the lowest paid workers”.

Whilst the decision will be welcomed by unions and employees, employers and business will likely feel the strain of such a significant wage increase. Despite this, the FWC was not persuaded to delay the application of the increase, with it applying to nearly all Modern Awards from ppc 1 July 2022. 

Delayed application for very limited number of Modern Awards:

The following awards applicable within the sectors which remain the most impacted by the COVID-19 pandemic will not be subject to the above increase/s until ppc 1 October 2022 : 

Aircraft Cabin Crew Award 2020;

Airline Operations – Ground Staff Award 2020;

Air Pilots Award 2020;

Airport Employees Award 2020;

Airservices Australia Enterprise Award 2016;

Alpine Resorts Award 2020;

Hospitality Industry (General) Award 2020;

Marine Tourism and Charter Vessels Award 2020;

Registered and Licensed Clubs Award 2020; and

Restaurant Industry Award 2020.