The Fair Work Commission handed down its decision to increase minimum wages
effective 1 July 2022 on 15 June 2022.
The national minimum wage will increase by $40.00 per week (5.2%). This amounts to $812.60 per week or $21.38 per hour.
The minimum wages in modern awards will increase by 4.6%, subject to a minimum increase for adult award classifications of $40 per week (38 hours). This means modern award minimum wage rates:
- Above $869.60 per week, will increase by 4.6%
- Below $869.60 per week, will increase by $40.00
However, not all Awards increase on 1 July 2022. The Awards for hospitality, tourism and aviation industries will increase on 1 October 2022.
The Fair Work Ombudsman’s website provides good examples of how the increases will work in practice. The site also lists the Awards for the industries that will not increase until 1 October 2022.
Superannuation - removal of $450 per month threshold for superannuation guarantee eligibility from 1 July 2022, employers will be required to make super guarantee contributions to their eligible employee's super fund regardless of how much the employee is paid. Employers must still satisfy other super guarantee eligibility requirements.
Superannuation guarantee rate increases to 10.5% from 1 July 2022
Now is the time to review and update your employment agreements to reflect these changes.
We're here to help
If you have any questions about the minimum wage increases or the changes to superannuation rates, please visit the ATO website or reach out to your Ulton Advisor for assistance.
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