Yesterday (15/06/22) news broke that following its Annual Wage Review 2021-22, the Fair Work Commission made the two announcements:
- The National Minimum Wage will increase by 5.2% which amounts to $40 a week.
- Award minimum wages will increase by 4.6%, which is subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.
This announcement comes on top of the planned increase to the superannuation guarantee rise from 10% to 10.5% on the 1 July. The super guarantee will continue to increase by .5% until it reaches 12% in 2025.
While the super guarantee increase has been known for some time and a wage rise was expected, the value of this wage rise is a lot higher than expected and may see business owners scrambling to recast their 2022-23 budgets.
There are some important considerations when looking at this issue:
- Cost of living continues to increase and those on minimum wage or award rates may be finding it incredibly tough.
- This wage rise will increase costs for businesses in sectors that are already facing cost increases in raw materials and ingredients and supplies.
- There is the potential for such a significant wage increase to contribute to inflation, and inflation is considered the biggest threat to the economy.
Do you pay your staff under an award or the minimum wage? How will this wage increase affect your business? We’d really like to hear from you, please contact us and share your thoughts. All comments will be treated with sensitivity and will be anonymised.