On 16 June 2021 the Fair Work Commission (FWC) released its 2021 wage decision. A 2.5% increase will be applied to all Award rates and to the national minimum rate.
The minimum weekly wage will increase from 1 July 2021 and will move to $772.60 per week or $20.33 per hour which is a weekly increase of $18.80.
Although the increase will be applied to all Awards, the FWC has again staggered the dates from which the increase will apply to different Awards. There are 3 implementation dates for the implementation of the 2.5% Award increases.
The vast majority of Awards will increase from 1 July 2021, with the following exceptions.
The General Retail Industry Award 2020 increase will apply from 1 September 2021.
The following Modern Awards, which the FWC have identified as having experienced “exceptional circumstances” will increase from 1 November 2021:
The increase of 2.5% will also apply to many allowances provided for in Awards. However, this may vary from Award to Award and therefore we encourage employers to check what is to occur for the Awards that cover their employees to make sure that the value of allowances increase where required.
The 2.5% increase is in addition to the increase of 0.5% in superannuation which takes effect on 1 July 2021. For specific information on the implementation of the increase in superannuation we refer you to our article Superannuation guarantee increases from 9.5% to 10% from 1 July 2021.
It’s imperative that all employers ensure they are paying their employees at the correct rates. For assistance please contact one of our Industrial Relations experts on 1300 200 725.
Published: 17/6/2021
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