Following the completion of its annual wage review, the Fair Work Commission has announced that from 1 July 2022, Australia’s minimum wage will increase.
It is a significant change with the highest percentage increase to the minimum wage since 2020 – means those sitting outside an award will receive an increase of 5.2% to $21.38 per hour. For those captured by an award, the minimum wage will increase by 4.6%.
As a promise made by the Labor party, the rise in minimum wage has been settled. As a response to the huge impact of high inflation on more than 2.3 million Australians who earn the minimum wage.
Interestingly enough, the Reserve Bank predicts that the rise will benefit more than minimum wage workers – suggesting that around 40% of employees, or about 5,000 people, could be directly or indirectly impacted. That’s because these people will also feel encouraged to ask for a pay rise or seek new collective agreements with their employers.
If you employ contractors on a minimum wage – whether inside or outside an award – you have until 1 July to adjust your payroll system so that it’s ready to pay the new rate. Even if you don’t employ people on a minimum wage, prepare now for negotiations with your workforce.
Need Help with Your Payroll?
If you have any further questions, please do not hesitate to send us an e-mail at admin@lockwood.com.au or call us on 02 9299 7044.
Lockwood and Ward do not own the rights to this article. It is being shared to you for informative purposes. This article was created by The Ayers Group Pty Ltd who owns the copyright in this material. The original article can be located here.