Minimum Wage Rises by 2.5% – What does this mean for you?

Ange Connor

Minimum Wage Rises by 2.5% and Superannuation increased from 9.5% to 10%

The Fair Work Commission recently announced a 2.5% increase to minimum wages, making the new national minimum wage $772.60 per week or $20.33 per hour.

Ian Ross, the Commission’s President, advised that the panel had decided that the “markedly better” economic climate this year warranted a rise. However, increases would be staggered for workers across industries hardest hit by the COVID-19 downturn.

In response to the impacts of the pandemic, the increase is being rolled out in stages. The sectors still under pressure from coronavirus restrictions will have the increase delayed beyond 1 July. The Morrison government warned against a major increase, arguing it could dampen employment in small business during the coronavirus pandemic.

The increases for Modern Awards will be staggered across a select number of Awards, the changes have been grouped into the three stages below.

Group 1 – July increase

  • All other modern awards will have their minimum wages increased by 2.5% on 1 July 2021.

Group 2 – September increase

  • General Retail Industry Award 2020 wages will increase by 2.5% on 1 September 2021.

Group 3 – November increase

The following Awards will have their minimum wages increased by 2.5% on 1 November 2021:

  • 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

From 1 July 2021, the current superannuation rate of 9.5% will increase to 10%. This increase is a statutory increase and therefore, compliance with the increase is mandatory. All employees, even those not covered by an Award, are still entitled to the superannuation increase.

Key points:

  • The minimum wage has been increased to $20.33 per hour
  • Award wage increases in some COVID-affected industries have been delayed by three to five months
  • Superannuation increases from 9.5% to 10%

A full list of all awards and which group they fall into can be found here.

Annual Wage Review 2021 – Website news – Fair Work Ombudsman

This is the perfect time to consider what these increases will mean for your business. Best practice is to have all employees on an employment contract or employment agreement (instrument), which sets out their terms of employment, such as remuneration and superannuation entitlements.

Now is the time to review your employee wages and superannuation entitlements to ensure you are a) paying your staff at (or above) the correct rate, b) determining if there are more cost-effective ways to be employing or rostering your staff, and c) paying the correct percentage of superannuation.

Australian employment laws and Awards are complex and, unfortunately, it is easy to get caught out if you do not stay on top of the entitlements. If you want to know if you are paying enough, our blog explaining the basics on how to break down a wage or superannuation is a great place to start.

Need help navigating the complexities? Contact Inspire HQ on 5331 1734.




Disclaimer: The material contained in this publication is of a general nature only. It is not, nor is intended to be, legal advice. If you wish to act based on the content of this publication, we recommend that you seek professional advice.

About The Author
Ange Connor

Ange is the Founder and Director of Inspire HQ, one of regional Victoria’s leading recruitment, human resource (HR) and careers agencies. Ange is an ‘ideas’ person and a ‘big picture’ thinker. She loves to challenge the status quo – in fact, that’s how Inspire HQ began.

Ange has supported hundreds of businesses across Ballarat and regional Victoria to attract, engage, motivate, develop and retain their greatest assets; their people. Ange’s unyielding passion and invaluable knowledge of the recruitment and HR industry ensures she delivers the best solutions for her clients.

Ange has held various board positions and regularly volunteers her time to share her industry and market knowledge. She was recently a Councillor for the Victoria and Tasmania region of the Recruitment Consulting and Staffing Association (RCSA) of Australia and New Zealand, and she is a current Board Director of the Committee for Ballarat.

For more useful information, follow Ange on LinkedIn.

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