The 2022 minimum wage decision

The national minimum wage will rise by 5.2% or $40 a week, amounting to $812.60 per week or $21.38 per hour from 1 July 2022.

This decision has been based on the sharp rise in the cost of living and the strengthening of the labour market (read the cost of lettuce and fuel).

The Commission has also increased Modern Award minimum wages by 4.6%.

This means minimum award wage rates:

  • above $869.60 per week, will receive a 4.6% increase
  • below $869.60 per week, will receive a $40 increase

Delay in minimum wage changes for certain sectors

There has also been a decision to delay the increase for the hardest-hit sectors such as hospitality, aviation, and tourism. Increases to Awards in those sectors will come into effect from 1 October 2022.

What to do now for wage and superannuation changes

Employers also need to remember to budget for the 0.5% increase in superannuation on 1 July 2022.

The penalties for underpaying workers can be hefty and is against the law. So, what do you need to do?

  • Double-check that your rates are correct.
  • Make sure that you apply the new pay rates from the first pay period after your applicable start date

The increase does not affect employees that are earning more than minimum wage or above the Award rates (though in a tight labour market – hang on to your people).

You can read the full minimum wage decision online

If you need any assistance in ensuring your pay rates are correct, feel free to give us a call at HR Gurus 1300 959 560.

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