2.5% increase to national minimum wage
The national minimum wage increase is almost here!
The Fair Work Commission has announced a 2.5% increase in the national minimum wage as part of the Annual Wage Review. This increase will also apply to award wages.
The increase will come into effect for some awards from 1 July 2021, along with the Superannuation Guarantee increase from 9.5% to 10% for employees.
The operative dates for different groups of awards are as follows:
- Group 1 Awards – the increase is effective from the first full pay period that starts on or after 1 July 2021.
- Group 2 Awards – the increase is effective from the first full pay period that starts on or after 1 September 2021.
- Group 3 Awards – the increase is effective from the first full pay period that starts on or after 1 November 2021.
The national minimum wage order contains:
- A national minimum wage of $772.60 per week or $20.33 per hour.
- Two special national minimum wages for award/agreement free employees with a disability:
- for employees with a disability whose productivity is not affected, a minimum wage of $722.60 per week or $20.33 per hour based on a 38 hour week, and
- for employees whose productivity is affected, an assessment under the supported wage system (SWS), subject to a minimum payment fixed under the SWS.
- Wage provisions for award/agreement free junior employees based on the percentages for juniors in the Miscellaneous Award 2020 applied to the national minimum wage.
- The apprentice wage provisions and the National Training Wage Schedule in the Miscellaneous Award 2020 for award/agreement free employees to whom raining arrangements apply, incorporated by reference and a provisions that adult apprentices should not receive less than the national minimum wage.
- A casual loading of 25% for award/agreement free employees.
For a full list of the awards under each group and to see when the increase will come into effect for each of your employee categories, click the button below:
What to do now:
We suggest you subscribe to the Fair Work Commission alerts to receive email updates as they continue to provide new information including when new rates are available. The alerts include updates on topics including:
- pay and award changes
- important industry updates
- changes to workplace laws
- Fair Work’s employer newsletter
- media releases.
Prepare now
With the minimum wage increase coming into effect in as little as two weeks, it is important you are prepared. AFS can assist you with cash flow management for your payroll to ensure your business can successfully manage the increase. Give us a call on 03 5443 0344 or email afs@afsbendigo.com.au
