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Monday, July 15, 2024

Minimum wage to increase by 2.5%

Many minimum wage workers across the country can expect to see an increase in their pay packet as we enter July, following the decision by the Fair Work Commission to increase minimum wage and related awards by 2.5 per cent across the country.

The new minimum wage will rise to $772.60 full time per week or $20.33 per hour, an increase of $18.80 a week.

Increases to Australia’s lowest wages will apply from employees’ first full pay period on or after July 1, while increases to accompanying awards will take place across three stages depending on their industries.

Fair Work Commission President, Justice Iain Ross, highlighted the difference of current economic conditions compared to those witnessed during the commission’s last wage review in 2020, which took place at the height of the pandemic and saw a wage increase of 1.75 per cent.

“There was a broad consensus in the submissions before us that the current performance of the economy has exceeded expectations and that the economic recovery is well underway,” said Mr Ross.

In spite of the positive signs, Mr Ross said the phased approach towards award increases is the result of the Commission acting cautiously amidst a future of ongoing uncertainty.

“The prevailing economic circumstances and the uncertainty surrounding the pathway out of recession have led us to adopt a cautious approach to both the quantum and the timing of an adjustment to the NMW and modern award minimum wages,” he said.

Retail workers will see their award increase from September 1, while the aviation, fitness, and tourism and hospitality sectors will wait until November 1.

For more information on what it means for your sector go to www.fairwork.gov.au/about-us/news-and-media-releases/website-news/annual-wage-review-2021.

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