Fair Work Commission announces 5.2% raise in Australia minimum wage

News highlights

• The Fair Work Commission has announced new minimum wage rates.
• A 5.2% increase has been announced in the National Minimum Wage.
• A 4.6% increase has been announced in the Award Minimum Wage.

The Fair Work Commission made an announcement concerning Australia minimum wage. These will be useful information for those who are planning to migrate and work in Australia.

This announcement was made after the Annual Wage Review 2021-2022 was published. The following are the 2 major updates from the announcement:

• The National Minimum Wage will be raised by AUD40 per week (an increase of 5.2%).
• Award minimum wages will be raised by 4.6%. This increase in wage is subject to a minimum raise of AUD40 per week for award classifications. The wage will be based on a 38-hour week for a full-time employee.

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What's meant by award minimum wages?

Awards (modern awards) are legal documents that outline the minimum pay rates and conditions of employment.

Fair Work Commission

Awards are applicable to employees and employers who depend on the industry they are employed in as well as the job type they are working in. An award contains information about the person it covers.

It’s possible for an employer to have coverage of more than one award. The number of awards depends on the job that particular employees work in. In short, an award is a legal document to lay out the terms and conditions that an employer and employee have to agree upon. These terms include minimum wage stipulations too.

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However, awards aren’t applicable to employees with a high income. These are employees who:

• Has accepted a guarantee of annual earnings in writing
• Is given the guarantee that the person will earn an annual wage that exceeds the high-income threshold. The high-income threshold changes annually.

In the latest announcement made by Fair Work Commission, the rate of increase announced was lesser for award job pay when compared to the national minimum wage Australia pays.

Also read...

Public sector staff pay rise in NSW, Australia

About the National Minimum Wage in Australia

The National Minimum Wage is applicable to those employees who are not covered by a registered agreement or an award. This is the minimum pay rate fixed by the Fair Work Act 2009. The rate is subject to annual review.

Those employees who are covered by a registered agreement or award are entitled to the minimum pay rates. This includes allowances and penalty rates in their agreement or award. It’s also possible that these pay rates are higher than the National Minimum Wage.

Pay hike in Australia  applicable for foreign workers

Observing the pay hike from the point of view of earnings, the hike in Australia minimum wage of 5.2% announced by Australia's Fair Work Commission came as a relief to wage earners in a time when inflation is gaining in Australia. A significant percentage of temporary workers, who are migrants also shared the feeling. The raise given now is double the rate of award pay in 2021.

Employees who are paid the lowest will get AUD21.38 an hour from July 1, 2022. This is up from the present rate of AUD20.33. The impact of this decision will be on over 2 million workers in the country.

"Many of those people who are on minimum wage are the heroes who saw us through the (COVID-19) pandemic. These workers deserve more than our thanks, they deserve a pay rise, and today they have got it"

Anthony Albanese, Prime Minister of Australia

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