REMINDER: Select Modern Awards subject to 2.5% wage increase from 1 November
A small number of Modern Awards remain to be varied for this year’s Annual Wage Review Increase of 2.5%, which will be flowed into 20 awards from the first full pay period commencing (ppc) on or after 1 November 2021.
If you’re seeking confirmation of the increase awarded via the 2021-22 Annual Wage Review, applicable to most award-covered employees from ppc 1 July 2022, see our related article.
Modern Awards of interest to Employer Services clients which will receive the 2.5% increase from 1 November include the Registered & Licensed Clubs Award 2020; Hospitality Industry (General) Award 2020; Restaurant Industry Award 2020; Amusement, Events & Recreation Award 2020; Hair & Beauty Industry Award 2010; Nursery Award 2020; and, Fitness Industry Award 2020.
Wage rates and wage-related allowances (being those calculated with reference to the designated ‘standard rate’ of each award) will increase by 2.5% while certain expense-related allowances, such as meal allowance and mileage allowance, may also be subject to increase.
Increases to expense-related allowances are determined each year according to the percentage movement in the applicable consumer price index (CPI) figure most recently published by the Australian Bureau of Statistics (ABS) since the allowance was last adjusted. For example, in the case of the meal allowance, the applicable CPI figure is usually designated as the ‘Take away and fast foods sub-group’. In respect of awards remaining to be varied from ppc 1 November, the applicable quarter for the CPI figure that must be used to adjust expense-related allowances is the September 2021 quarter. The ABS will not release the September 2021 quarter data until Wednesday, 27 October 2021, meaning the FWC cannot publish final determinations updating expense-related allowances for this final group of awards until Saturday, 30 October 2021. Updated Modern Awards will subsequently not be able to be released more than a few days prior to 1 November.
Although the Employer Services office will be closed for the rescheduled Show Holiday for Brisbane City on Friday, 29 October 2021, our release of updated Modern Awards impacted by the 1 November increase will not be delayed.
The 2.5% increase was flowed into the General Retail Industry Award 2020 from ppc 1 September 2021 with all other Modern Awards having received the increase from ppc 1 July 2021. The complete list of Modern Awards which remain to be varied from ppc 1 November 2021 can be viewed in our earlier news post here.