Increase to Minimum Wage - What does the changes mean to you?

April 19, 2023

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Recently the Fair Work Commission undertook its annual wage review. The Commission announced that there would be a 5.2% wage increase to the national minimum wage, and a $40 or 4.6% increase to award wages.


Minimum Wage Increase


The national minimum wage is currently $20.33 per hour or $772.60 per week. However, from 1 July 2022 the minimum wage will increase by 5.2%. For those employees not covered by an award or registered an agreement, the 5.2% wage increase will mean that those employees will earn an extra $40 per week.


Modern Award Increase


In addition, the Commission has announced an increase to minimum award wages. The increase means that minimum award wages above $869.60 per week, will get a 4.6% increase and minimum award wages below $869.60 per week, will get a $40 increase. Most award wages will increase from the first full pay period on or after 1 July 2022.


However, if you are in the hospitality and tourism industries, and covered by the following awards, the increase will not roll out until 1 October 2022:


  • Aircraft Cabin Crew Award
  • Airline Operations – Ground Staff Award
  • Air Pilots Award
  • Airport Employees Award
  • Airservices Australia Enterprise Award 2016
  • Hospitality Industry (General) Award
  • Registered and Licensed Clubs Award
  • Restaurant Industry Award
  • Marine Tourism and Charter Vessels Award
  • Alpine Resorts Award


Changes to Superannuation


The Federal Government has also announced that there will be changes to the superannuation laws, effective also from 1 July 2022. These changes will include the removal of the $450 minimum earnings threshold, and an increase in the employer contribution rate from 10% to 10.5%.


Once the $450 minimum earnings threshold is removed employers will be required to make contributions to an eligible employee's super fund regardless of how much the employee is paid. However, employees will still be required to satisfy other existing eligibility requirements.


The second change to the superannuation laws is an increase to the employer contribution rate. This change simply means that, as of the 1 July 2022 employers will need to calculate super contributions on payments to employees at the new rate of 10.5%.


As the end of the financial year approaches it will be important for employers to review their employment contracts and implement the necessary wage increases to ensure that they are compliant with the relevant award. 



By Matilda Lloyd (Law Graduate)


If you have questions about the changes and how they may affect you and your business, or on employment issues generally, please contact us on (08) 9321 5451 or by email at office@bailiwicklegal.com.au.


For further information about our legal services, please visit our website: https://www.bailiwicklegal.com.au/


The above information is a summary and overview of the matters discussed. This publication does not constitute legal advice and you should seek legal or other professional advice before acting or relying on any of the content.

Bailiwick Legal newsletter June 2024 edition

By Jessica Brunner • June 19, 2024
Our June 2024 newsletter is now available. Have a read to find out what we have been up to in the first half of the year!

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