By Robby Magyar
As of the first full pay period on or after 1 November 2021, the modern award minimum wages have increased by two and a half per cent for awards within Group three of the Fair Work Commission’s (FWC) Annual Wage Review handed down on 16 June 2021 (full list of awards below). This increase reflects the final of the three stages of wage increases for the 2021-2022 financial year.
The increase applies to the base rate of pay an employee is entitled to under the applicable modern award and may impact the calculation of any loadings, allowances, overtime payments, or penalties included in the award.
It’s imperative employers ensure the wages of all employees covered under any of the Group three awards are adjusted by the first full pay period after 1 November 2021 to avoid breaching the award or being exposed to underpayment claims.
The ‘first full pay period’ means that if, as of 1 November, the relevant employees are still in the middle of a pay period, they can remain on that old rate until the end of the pay period, at which time the new rate will apply. For example, if your employees are on a weekly pay cycle that runs from Sunday-Saturday, then the first full pay period on or after 1 November 2021 will commence on 7 November 2021.
If any of your employees are award-covered employees on an annualised salary, these award increases may require their salary to be raised if it would otherwise fall below their minimum entitlements, even where there are any set-off arrangements in place.
If you have employees covered by any of the awards below and want to make sure you’re paying them correctly, please get in touch with the Telephone Advisory Team.
- 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
If you have any questions about this information or just want to make sure you are paying your staff correctly, please contact our team of employment experts at our 24/7 Telephone Advisory Service.
Robby Magyar is a Workplace Relations Consultant at FCB and HR Assured who relishes the opportunity to assist businesses in the best practice approach to managing employees and compliance concerns. He has a particular interest in making employment law and human resources digestible for our clients.