Will the Annual Wage Review Affect Your Business?
The annual wage review conducted by the Fair Work Commission resulted in a 2.5% increase to both minimum wage and all award wages. You may not realise that these changes are rolling out in three clear stages – and there are still two stages to go.
So, let’s take a look at what you – and your HR department – need to be aware of. Here are the basics:
The first stage of increases came into effect on 1 July 2021.
An increase to the superannuation guarantee also came into effect on 1 July 2021.
The increases apply to anyone who is paid either the national minimum wage OR minimum award wages. This covers many types of employees across multiple industries.
The increase does not apply to anyone who is paid more than minimum wage.
Two additional award increase stages are scheduled for 1 September and 1 November 2021.
September 1 award increase
The award increase on 1 September 2021 is specifically related to the Retail Award Wage. This increase will need to be applied from the first pay period on or after 1 September 2021.
You should also be aware that changes to part-time hours in the Retail Award already came into effect on 1 July 2021. This included changes such as introducing a new term (guaranteed hours), overtime clarifications, a provision allowing employees to request an increase in their guaranteed hours, and the ability to vary their guaranteed hours via written communication.
November 1 award increase
The November award increase applies to a long list of industries, many of which are travel or hospitality related. According to the Fair Work Commission, the 21 affected awards are:
Pilots Award
Cabin Crew Award
Airline Ground Staff Award
Airport Award
Alpine Resorts Award
Amusement Award
Dry Cleaning and Laundry Award
Fitness Award
Hair and Beauty Award
Hospitality Award
Live Performance Award
Models Award
Marine Tourism and Charter Vessels Award
Nursery Award
Racing Clubs Events Award
Racing Ground Maintenance Award
Registered Clubs Award
Restaurant Award
Sporting Organisations Award
Travelling Shows Award
Wine Award
As with the other two stages, this increase will need to be applied from the first pay period on or after the effective date – in this case, 1 November 2021.
How can halkinbp help?
If your HR or Payroll department is struggling with workload, or if your business isn’t ready for a full-time HR function, Halkin Business Partners can help. Our HR experts ensure you adhere to current employment legislation and simply engage in best human resource practice
