The Fair Work Commission (Commission) handed down its Annual Wage Review decision on 16 June 2021. The Commission approved a 2.5% increase to the national minimum wage, but again delayed the increase for sectors most affected by the ongoing COVID-19 pandemic.
From 1 July, the national minimum wage will be increased by 2.5% taking it to $20.33 an hour (or $772.60 per week). This equates to an increase of 49 cents per hour (or $18.80 per week).
Modern award rates will also be increased by 2.5%. However, the operative dates for the increase will depend on the industry or award:
| 1 July 2021 | National Minimum Wage and Group 1 AwardsAll awards other than those listed in Group 2 and Group 3. |
| 1 September 2021 | Group 2 AwardsGeneral Retail Industry Award 2020 |
| 1 November 2021 | Group 3 AwardsAir Pilots Award 2020Aircraft Cabin Crew Award 2020Airline Operations – Ground Staff Award 2020Airport Employees Award 2020Airservices Australia Enterprise Award 2016Alpine Resorts Award 2020Amusement, Events and Recreation Award 2020Dry Cleaning and Laundry Industry Award 2020Fitness Industry Award 2020Hair and Beauty Industry Award 2010Hospitality Industry (General) Award 2020Live Performance Award 2020Mannequins and Models Award 2020Marine Tourism and Charter Vessels Award 2020Nursery Award 2020Racing Clubs Events Award 2020Racing Industry Ground Maintenance Award 2020Registered and Licensed Clubs Award 2020Restaurant Industry Award 2020Sporting Organisations Award 2020Travelling Shows Award 2020Wine Industry Award 2020 |
The Commission held that the decision to increase the minimum wage recognised “that the current performance of the economy has exceeded expectations and that the economic recovery [is] well underway”. However, the Commission also held that the ongoing threat of lockdowns, pace of the vaccine rollout and upcoming 0.5 per cent superannuation rise all weighed against a higher increase.
To access the Commission’s full decision, please click Annual Wage Review 2020-2021 Decision or to discuss the decision in more detail, please feel free to contact a member of the HMB Law team on (03) 9448 9600.
The above is general information and should not be taken as legal advice.
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