Will Your Business be Impacted by the National
Minimum Wage Increase?

Each year, the Fair Work Commission reviews the national minimum wage and the minimum award wages as part of the Annual Wage Review. As a result of this year’s review, the national minimum wage is set to increase by 2.5% from 1 July 2021. The changes will also apply to minimum award pay rates although these will be rolled out over 3 stages in July, September and November.

Who will be affected?

Any employee who is paid the national minimum wage or minimum award wages will receive the wage increase. If an employee is covered by a registered agreement, however, it’s important to check whether they will be affected by the changes.

Most employees are covered by an award so it is essential, as a manager or business owner, to be across the increases as and when they apply to your particular business. Ensuring that employees are not only paid under the correct award, but also at the correct rate will help prevent underpaying workers.

When will the changes take place?

The national minimum wage will increase from 1 July 2021. In addition, most awards will also increase from this date. The Retail Award will increase from 1 September 2021 with the following awards increasing from 1 November 2021:

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 and Wine Award.

What next?

If employees are paid the national minimum wage or minimum award wages, managers should ensure that their payroll systems are updated in accordance with the increase. It’s also meaningful to advise workers who are directly impacted by the changes as soon as possible, outlining how and when the changes will take place.

The Fair Work Commission is currently working to update the pay rates in each award so it’s important to stay informed with the most up-to-date information. Ensure you are meeting your obligations as an employer and contact us for a compliance check today.

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