The Fair Work Commission (FWC) made the Annual Wage Review 2021-22 Decision (the Decision) on 15 June 2022. The Decision increases the National Minimum Wage by $40 per week (which amounts to an increase of 5.2%).
The Decision also increases minimum award rates by 4.6%, with a $40 per week minimum increase applying.
The award increase will happen in two stages. Awards covering Australian Government employment, except for the Airservices Australia Enterprise Award 2016, will increase from
1 July 2022. Wages in the Airservices Australia Enterprise Award 2016 and nine other industry specific awards will increase from 1 October 2022.
Actions agencies need to take
Commonwealth employers have obligations under the Fair Work Act 2009 to ensure their employees are paid correctly. The hourly base rate of pay for an employee must not be less than the hourly base rate of pay payable under the award which covers that employee.
For existing industrial instruments, agencies should ensure that employees are being paid at least the new award minimum pay rates. As an example, the minimum hourly pay rate for an APS Level 1 employee will increase from $23.18 to $24.25 on 1 July 2022.
The Fair Work Commission will update minimum pay rates in awards. Agencies should refer to their relevant award to ensure payroll processes are up to date and accurate and to avoid any potential for underpayments. Information on the correction of underpayment of wages can be found in this APSC Circular.
Agencies should also be aware that this adjustment will also flow through to employees engaged through the Supported Wage System. The Awards will be updated accordingly.
Further information and advice
For further information, please contact the Australian Public Service Commission at email@example.com or your agency’s relationship manager.