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Annual Wages Review July 2021

Each year, the Fair Work Commission conducts a review of wages which ordinarily sees an increase in Award rates from 1 July. This years'  review has just concluded, and the Commission has granted a 2.5% increase in the minimum wage that will flow on to all modern Awards.

The minimum wage (for an adult employee) will increase to $20.33 per hour. Awards will have staggered increases. The reason for this is that the Commission took into consideration the impact of the COVID-19 pandemic, and grouped the Awards / industries and occupations into three 'clusters': lagging recovery, almost recovered, and fully recovered.

All Awards except those indicated below will change from 1 July 2021. Rates schedules are available on the Fair Work site https://www.fairwork.gov.au/.

Increases under the Awards named below will take effect as follows:

From 1 September 2021:

  • General Retail Industry Award

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
  • Wine Award

If you have employees covered by an enterprise agreement, it is important to ensure that the base rates in those agreements remain at least equal to the new minimum Modern Award rates. Also, if you are paying staff above-Award rates and your contracts include terms that have the effect of "absorbing" certain Award provisions (such as annual leave loading, penalties and/or allowances), you need to ensure that the amount you are paying them still exceeds the new Award rates plus entitlements they would otherwise receive under the Award.

​This article includes general information only and is not specific or legal advice. Please check the Fair Work website (www.fairwork.gov.au) for full details or call us if you need assistance.

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