FWC decides on 2.5% increase to award wages

The Fair Work Commission has handed down its decision in the 2020-2021 Annual Wage Review.

The result is a 2.5% increase in the National Minimum Wage taking it to $772.60 per week or $20.33 per hour.

This increase flows on to modern awards effective from 1 July 2021 except for the following awards where the Commission has decided to delay the implementation of the increases:

1. For the General Retail Industry Award 2020, the increases will come into effect on 1 September 2021.
2. For the following modern awards and modern enterprise awards, the increases will come into operation 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.

Please also remember that the Superannuation Guarantee Charge increases by 0.5% to 10% effective from 1 July 2021 as well.

So here are 4 things that employers need to do:

1. Review rates of pay to ensure that all employees are being paid at or above award rates
2. If you currently have annualised wage or salary arrangements in place with any employees, review those to ensure that they are compliant with minimum requirements and that both minimum award rates and any setoff award provisions are adequately covered by the annualised wage or salary
3. Make the required adjustment to superannuation guarantee contributions and
4. Review your employment contracts to ensure that they reflect the new minimum rates and superannuation guarantee and that they have picked up on any variations to the Fair Work Act (such as the recent casual employment variations) and modern awards that have occurred in recent times (there have been quite a number of variations to modern awards in the last 12 months as part of the modern award review process).

If you need assistance with any of this, please do  not hesitate to contact Liam Maguire on 0421 592 541 or at liam@ridgelinehr.com.au.