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Who is getting an increase? Details from the 2021 Annual Wage Review

Minimum wage growth

The Fair Work Commission (FWC) published its decision on the Annual Wage Review on Thursday 17 June, with some increases staggered as per last year’s announcement.

 

National minimum wage

The FWC is providing a 2.5% increase to the national minimum wage and the Award minimum wages. From 1 July, the new weekly minimum wage will be $772.60, or $20.33 an hour.

 

Modern Award minimum wages                                           

The minimum rates of pay for employees covered by an Award will also be increased by 2.5%. The weekly wages will be rounded to the nearest $0.10.

In a similar approach to last year, the wage increases will be staggered across three tranches, with the majority of awards to come into effect on 1 July 2021.

The increase to the General Retail Industry Award will take effect on 1 September 2021.

Awards across the airline, recreation, hotels, tourism and restaurant sectors will have their increases delayed until 1 November 2021. They are:

  • 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

 

Flow on effect on Annualised Salaries

The increases to Award rates of pay also have implications in relation to the administrative requirements for employees on annualised salary arrangements.

In March 2020, highly onerous administrative requirements were inserted in many awards which require employers to provide written advice to employees outlining the calculation of their annual salary and the ‘outer limits’ of extra hours they may work before being entitled to extra pay.

Bob Venema, our Workplace Relations National Manager, says, “We recommend that employers review and update the calculations to reflect the award increases. It most likely will require you to reissue letters in July 2021 outlining new outer limit calculations for annualised salary arrangements.”

 

Enterprise Agreements and the increase

Employers who pay in accordance with an enterprise agreement should ensure that the base rates of pay under the agreement are no lower than the increased modern award rates of pay, particularly if the agreement was made a number of years ago.

 

Need assistance?

Bayside Group’s expert Workplace Relations team is available to advise and assist in all these matters.

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