On 16 June 2021 the Fair Work Commission (FWC) released its 2021 wage decision. A 2.5% increase will be applied to all Award rates and to the national minimum rate.
The minimum weekly wage will increase from 1 July 2021 and will move to $772.60 per week or $20.33 per hour which is a weekly increase of $18.80.
Although the increase will be applied to all Awards, the FWC has again staggered the dates from which the increase will apply to different Awards. There are 3 implementation dates for the implementation of the 2.5% Award increases.
The vast majority of Awards will increase from 1 July 2021, with the following exceptions.
The General Retail Industry Award 2020 increase will apply from 1 September 2021.
The following Modern Awards, which the FWC have identified as having experienced “exceptional circumstances” will increase from 1 November 2021:
- Air Pilots Award 2020
- Aircraft Cabin Crew Award 2020
- Airline Operations – Ground Staff Award 2020
- Airport Employees Award 2020
- 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.
The increase of 2.5% will also apply to many allowances provided for in Awards. However, this may vary from Award to Award and therefore we encourage employers to check what is to occur for the Awards that cover their employees to make sure that the value of allowances increase where required.
The 2.5% increase is in addition to the increase of 0.5% in superannuation which takes effect on 1 July 2021. For specific information on the implementation of the increase in superannuation we refer you to our article Superannuation guarantee increases from 9.5% to 10% from 1 July 2021.
It’s imperative that all employers ensure they are paying their employees at the correct rates. If you require assistance, please contact our HR Consulting division on firstname.lastname@example.org, 07 3218 3919 or via the form below.
Author: Cheryl-Anne Laird
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