Monday 20 June 2022

Fair Work Commission announces minimum wage increase

The Fair Work Commission (FWC) has raised the national minimum wage - the minimum wage for all national system employees who are not covered by a modern award or enterprise agreement - by 5.2%, with Australia’s lowest paid workers due to receive a $40 per week pay rise, effective 1 July 2022.

Those employees who are covered by modern awards will have their minimum wage increased by either:

  • $40 per week (where the current minimum wage is $869.60 per week or less) or

  • 4.6% (where the current minimum wage is greater than $869.60 per week).

The FWC agrees there are exceptional circumstances, and have delayed the wage increases until 1 October 2022 for modern awards in the aviation, tourism and hospitality sectors. Outside of those sectors, the increases will apply from 1 July 2022.

 

If you pay an employee less than their minimum wage entitlement, your employee may have rights under legislation to claim the underpayment from you. Employers could face prosecution for breaching the minimum wage instrument.