15 June 2021 • 4 minute read
Australia: Fair Work Commission increases national minimum wage
On 16 June 2021, the Fair Work Commission (FWC) published the Annual Wage Review Decision for 2020-21, announcing a rise of 2.5%.
This means that:
- The national minimum wage (NMW) is $772.60 per week or $20.33 per hour. The rise amounts to an increase of $18.80 per week or 49 cents per hour and takes effect from 1 July 2021. The NMW applies to employees who are not covered by an award or enterprise agreement.
- Wages specified in modern awards will increase by 2.5%, taking effect on a staggered basis.
Following from the precedent set last year by the FWC, it has again decided that given the impact of COVID-19 in certain industries, wage increases under certain modern awards will be delayed as follows:
| Wage increase to take effect from | Applicable awards |
| 1 September 2021 | General Retail Industry Award 2020 |
| 1 November 2021 | This includes modern awards applying employees in industry sectors adversely impacted by the pandemic, such as tourism, hospitality, dry cleaning, fitness, air services, airports and airlines, hair and beauty, and sporting, arts and live events. It includes the Fitness Industry Award 2020, Hospitality Industry (General) Award 2020, Registered and Licensed Clubs Award 2020 and Live Performance Award 2020. A full list of these awards can be found in paragraph 84 of the summary decision. |
| 1 July 2021 | All other awards. |
The DLA Piper employment team has extensive expertise in modern award compliance and analysis and here to help with any questions you may have as you work through these changes.