As per the Fair Work Commission’s announcement on 15 June 2022, the national minimum wage will increase starting 1 July 2022.
What you can do now
The Fair Work Ombudsman have updated their pay tools, information, and resources with the new rates for the first set of awards affected.
- use the Fair Work Pay and Conditions Tool to calculate your employee’s new pay rates (including allowances)
- go to the Fair Work Pay guides page to access the updated pay guide for your award
- use the Fair Work Find My Award tool to check what honour you’re covered by
- update your payroll and accounting systems so that you continue to pay your employees the right amount of super.
1 July 2022 minimum wage increase
From the first pay period on or after 1 July 2022, minimum wages increase under the National Minimum Wage and most awards.
National Minimum Wage increase
The National Minimum Wage applies to employees not covered by an award or registered agreement.
From 1 July 2022, the National Minimum Wage has increased by $40 per week, which amounts to an increase of 5.2%.
The new National Minimum Wage is $812.60 per week or $21.38 per hour.
Award minimum wage increase
An award covers most employees. Awards are legal documents that outline the minimum pay rates and conditions of employment. If you’re unsure which award applies to you, use Find My Award.
From the first pay period on or after 1 July 2022, adult minimum award wages increased by 4.6%, subject to a minimum increase for award classifications of $40 per week and based on a 38-hour week for a full-time employee.
Other award wages, including junior, apprentice and supported wages based on adult minimum wages, will get a proportionate increase.
This means minimum award wages:
- Above $869.60 per week, get a 4.6% increase
- below $869.60 per week, get a $40 boost.
1 October 2022 minimum wage increase
Some award rates increase as of 1 October 2022.
The adult minimum wage in some aviation, tourism and hospitality awards will increase from the first entire pay period on or after 1 October 2022.
These awards include:
- Air Pilots Award [MA000046]
- Aircraft Cabin Crew Award [MA000047]
- Airline Operations – Ground Staff Award [MA000048]
- Airport Employees Award [MA000049]
- Airservices Australia Enterprise Award 2016
- Hospitality Industry (General) Award [MA000009]
- Registered and Licensed Clubs Award [MA000058]
- Restaurant Industry Award [MA000119]
- Alpine Resorts Award [MA000092]
- Marine Tourism and Charter Vessels Award [MA000093]
Superannuation changes from 1 July 2022
There are also changes to superannuation taking effect from 1 July 2022.
This includes the following:
Removal of the $450 super guarantee threshold
Employees will be eligible for a super guarantee, regardless of their earnings. This is because the $450 monthly eligibility threshold for when the super deposit is paid is being removed. You only need to pay super for workers under 18 who work more than 30 hours a week.
Increase in the super guarantee rate from 10% to 10.5%
The super guarantee rate will increase from 10% to 10.5% on 1 July 2022. You will need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July. (The super guarantee rate is legislated to increase to 12% by 2025).
Ensure you update your payroll and accounting systems to continue to pay the right amount of super for your employees.