Minimum Wage Increase Update
The Fair Work Commission (FWC) recently announced its decision to increase the National Minimum Wage by 5.2%, and a 4.6% increase to minimum award wages with threshold rules applying. Modern Award rates will increase by the greater of either a minimum of $40 (gross/before tax) per week or by 4.6%.
The effect of this staggered approach is whereby the weekly wage is less than $869.60, the worker will receive a $40 per week increase and where the wage is greater than $869.60 per week the worker will receive a 4.6% increase.
The changes will take effect from (the first pay period after) 1 July 2022.
The decision FWC President Iain Ross handed down will see the minimum wage lift from $20.33 per hour ($772.60 per week) to $21.38 per hour ($812.60 per week) or the equivalent of an extra $40 per week to the household budget.
Ian Ross highlighted the major changes since last year’s wage increase was attributed to the spike in the cost of living, the strengthening of the labour market and the unemployment rate dropping to 3.9 per cent in May compared to 5.5 per cent in April 2021.
For members of the Victorian Farmers Federation (VFF), the increase will occur from the first full pay period on or after the 1st of July 2022.
Also, for VFF members, a reminder that from July 1st 2022, the Superannuation Guarantee rate increases to 10.5% from 10%. Also, 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. Employees must still satisfy other super guarantee eligibility requirements.
The Workplace Relations Team at the VFF will be distributing wage sheets for each relevant Award to subscribers, prior to the implementation date of 1 July 2022. The wage sheets will also be available prior to the 1st of July 2022, via email to your nominated email address. For any questions relating to the above or if further assistance is required, please call the team on 03 9207 5513.