Minimum Award Rates

The Fair Work Commission (FWC) has announced a 2.5% increase to the national minimum wage following their annual review. This will apply to all awards however, similar to last year, this will be rolled out in 3 stages.

The new national minimum wage rate will apply from the 1 July 2021 with the exception of the Retail Award, which will not increase until 1 September 2021 and rates in the following awards where the FWC deemed there were exceptional circumstances. These awards listed below will not increase until 1 November 2021:

• Hospitality Award
• Restaurant Award
• Registered Clubs Award
• Hair & Beauty Award
• Fitness Award
• Racing Clubs Events Award
• Racing Ground Maintenance Award
• Sporting Organisations Award
• Wine Award
• Live Performance Award
• Pilots Award
• Cabin Crew Award
• Airline Ground Staff Award
• Airport Award
• Alpine Resorts Award
• Amusement Award
• Dry Cleaning Award
• Models Award
• Marine Tourism & Charter Vessels Award
• Travelling Shows Award
• Nursery Award

Although the award rate increase only affects employees who are paid on the minimum award rates, if you pay your employees a salary or above the award rates, you will still need to do your due diligence & ensure that their current rate is still above the NEW minimum rate.

The FWC will now go about issuing draft determinations and orders about how this decision affects awards. Then all pay rates will be updated in each award. These are usually issued right before the increase takes affect so keep an eye out for these here: https://www.fairwork.gov.au/awards-and-agreements

Superannuation

Please also note the Superannuation Guarantee will increase from 9.5% to 10% from 1 July 2021. Super Guarantee is payable on all ordinary time earnings which includes ordinary hours of work, shift loadings & allowances, but not overtime.

If you would like any assistance with these pay increases or would like to discuss any other payroll assistance or bookkeeping needs, please do not hesitate to contact Evolve Online Bookkeeping for an obligation free quote on 07 5413 9393 or queries@evolveonlinebookkeeping.com.au.