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2021 Annual Wage Review

Following the 2021 Annual Wage Review, the Fair Work Commission (FWC) has announced a 2.5% increase to minimum wages.

The increase applies to anyone who is paid minimum award wages or the national minimum wage. The increase doesn’t affect employees who already get paid more than their new minimum wage.

For anyone not covered by an Award or a Registered Agreement, the new national minimum wage will be $772.60 per week or $20.33 per hour.

The 2021 Annual Wage Review decision also applies the 2.5% increase to Award wages.

As with the FWC decision in 2020 to stagger the dates from which the new rates apply, the 2021 Award increase will happen in 3 stages. Most Awards will increase from 1 July 2021. Wages in the Retail Award will increase from 1 September 2021 and the rates in 21 other awards where the FWC deemed there were “exceptional circumstances” (such as those covering employees working in airlines, fitness centres, hospitality, live performance etc.) will increase from 1 November 2021.

In making their decision to increase the national minimum wage, the FWC Panel noted in their Summary of Decision:

Taken overall, the change in circumstances—the markedly better economic environment, the scheduled SG [Superannuation Guarantee] increase and the tax-transfer changes—weigh in favour of a higher increase than was awarded in last year’s Review.

Last year’s review resulted in an increase of 1.75% to the national minimum wage.

The FWC will issue draft determinations and orders about how this decision affects Awards, then update the pay rates in each Award. For more information, including key dates and the list of the 21 Awards defined as being under “exceptional circumstances” criterial, check out the FWO’s news and media release here.

With the start of a new financial year just around the corner, there’s no better time to find out how Bare Bones Consulting can help manage your HR risk, including compliance with your Award and wages obligations. We know you’re busy running your operation so we offer you tailored options that you can build on as you grow. Too busy to call? Shoot us a message through our “Contact Us” page and we’ll get right back you.

We’d like to think we’re the smarter choice in HR for your business…let’s grab a coffee and see if you agree!

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Note: Bare Bones Consulting provides HR services for employers. Employees seeking advice on workplace concerns should contact the Fair Work Infoline on 13 13 94.