Did you know that the minimum wage has increased?

From last Friday, 1 July 2022, the national minimum wage has increased by $40 per week. This amounts to an increase of 5.2% and follows the Fair Work Commission Annual Wage Review 2021-22.

Further, award minimum wages increase by 4.6%, which are subject to a minimum increase for adult award classifications of $40 per week and based on a 38-hour week for a full-time employee.

Other award wages based on adult minimum wages will get a proportionate increase, including junior, apprentice and supported wages.

As some awards get a minimum wage increase from the first full pay period on or after 1 July 2022, while others get one from the first full pay period on or after 1 October 2022, we strongly suggest that you get specific information from the Fair Work Ombudsman at Minimum wages increase from 1 July 2022.

 Please be aware that, as from 1 July 2022, there are also other changes you should know about. These include:

• high income threshold and compensation cap, where the high income threshold will be $162,000 and the compensation cap will be $81,000

• superannuation changes, including that the super guarantee rate is increasing from 10% to 10.5% (visit the ATO website to learn more about this increase: Get ready for super changes from 1 July).

• new award provisions under the Social, Community, Home Care and Disability Services (SCHADS) Award

• importantly, the end of unpaid pandemic leave in many awards.

Again, you can find out more about these changes from the Fair Work Ombudsman at Minimum wages increase from 1 July 2022.

Additionally, please feel free to call James Burke or Adam Stencel on (08) 8941 6355 or email james@bowden-mccormack.com.au or adam@bowden-mccormack.com.au should you wish to discuss any employment issues.