As you may or may not have seen, the Minimum Wage has increased and the Superannuation Threshold has changed!
The National Minimum Wage has increased by 5.2%, taking it to $812.60 per week or $21.38 per hour.
Minimum wages in modern awards will be increased by either:
- $40 per week, for adult award classifications (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).
Other award wages, including junior, apprentice and supported wages that are based on adult minimum wages, will get a proportionate increase. The national minimum wages for award-free juniors, employees under training arrangements, and employees with a disability have also been increased by 5.2%.
Award-free adult employees are covered by the national minimum wage, which had increased, effective from the first full pay period on or after 1 July 2022.
The following Modern Awards will increase on 1 October 2022:
Aircraft Cabin Crew Award 2020
Airline Operations – Ground Staff Award 2020
Air Pilots Award 2020
Airport Employees Award 2020
Airservices Australia Enterprise Award 2016
Alpine Resorts Award 2020
Hospitality Industry (General) Award 2020
Marine Tourism and Charter Vessels Award 2020
Registered and Licensed Clubs Award 2020
Restaurant Industry Award 2020.
What do you need to do?
Employers should ensure that employees who are paid in accordance with a Modern Award or the National Minimum Wage receive the appropriate pay increase by the relevant effective date.
Employers who do not pay strictly in accordance with award terms (e.g. those that pay above award rates, annualised salaries or ‘flat rates’ of pay) should ensure that their payments will still satisfy all of their obligations under the relevant award/minimum wage.
Reminder: the Superannuation Guarantee has increased by 0.5% on 1 July 2022, bringing the Guarantee to 10.5%.
If you would like assistance with the minimum wage and Award increases, including drafting letters on the salary increase for employees, please don’t hesitate to reach out to us anytime #wevegotyourback