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What does the increase in national minimum wage mean for your business?

Aug 20, 2021

Following the release of the Annual Wage Review in 2021, it has been announced that the Fair Work Commission, also known as the FWC, will be increasing the national minimum wage in Australia by a total of 2.5%.

 All award wages will also be adjusted in line with this increased percentage. These changes are happening gradually over phases between the 1st of July and the 1st of November.


As an employer, it's your responsibility to keep up on changes relating to the national minimum wage and award wages, especially if they apply to your employees. We've covered in detail all you need to know about the changes and who is included as a part of this increase:


What is the national minimum wage increase, and who does it apply to?


The national minimum wage increase is a result of the Annual Wage Review in 2021. Alongside a few other changes concerning the spread of hours, part-time retail hours and health services, a 2.5% increase in the national minimum wage was the most significant change in the 2021 review.


For any employee not covered by an award, the national minimum wage in Australia is now $20.33 per hour or $772.60 per week.


This increase applies to any employee who is either paid the national minimum wage in their job or the minimum award wage in professions covered by an award.


What do employers need to do to meet the new wage requirements?


Employers will need to review the current pay of their employees to see whether they meet these new national standards. It's essential you look up the correct information in line with the specific award your profession falls under. Regardless of what current employment contracts say, employees' wages should be raised to meet this new minimum amount if they fall beneath it.


All wage adjustments should have been carried out before the deadline of the 1st of July 2021. The exception to this rule is if the award for the business is part of the later dates detailed below. Employers should also note that employees' super guarantee rate has risen from 9.5% to 10% as of the 1st of July 2021.


The three stages of the wage increase


Most wage increase deadlines, including the generic national minimum wage deadline, were due on the 1st of July. However, certain professions will not need to switch their award rates over until the second or third stages listed below. The full list of awards covered are as follows:


July 1st 2021

[MA000018] Aged Care Award

[MA000118] Animal Care and Veterinary Services Award

[MA000153] Australian Government Industry Award

[MA000020] Building and Construction General On-site Award

[MA000095] Car Parking Award

[MA000120] Children's Services Award

[MA000022] Cleaning Services Award

[MA000002] Clerks – Private Sector Award

[MA000083] Commercial Sales Award

[MA000023] Contract Call Centres Award

[MA000075] Educational Services (Post-Secondary Education) Award

[MA000077] Education Services (Teachers) Award

[MA000025] Electrical, Electronic and Communications Contracting Award

[MA000003] Fast Food Industry Award

[MA000073] Food, Beverage and Tobacco Manufacturing Award

[MA000101] Gardening and Landscaping Services Award

[MA000027] Health Professionals and Support Services Award

[MA000008] Horse and Greyhound Training Award

[MA000028] Horticulture Award

[MA000010] Manufacturing & Associated Industries & Occupations Award

[MA000059] Meat Industry Award

[MA000104] Miscellaneous Award

[MA000034] Nurses Award

[MA000063] Passenger Vehicle Transportation Award

[MA000012] Pharmacy Industry Award

[MA000051] Port Authorities Award

[MA000074] Poultry Processing Award

[MA000065] Professional Employees Award

[MA000015] Rail Industry Award

[MA000038] Road Transport and Distribution Award

[MA000016] Security Services Industry Award

[MA000100] Social, Community, Home Care & Disability Services Ind. Award

[MA000084] Storage Services and Wholesale Award

[MA000103] Supported Employment Services Award

[MA000041] Telecommunications Services Award

[MA000043] Waste Management Award


September 1st 2021

[MA000004] General Retail Industry Award


November 1st 2021

[MA000049] Airport Employees Award

[MA000092] Alpine Resorts Award

[MA000080] Amusement, Events & Recreation Award

[MA000096] Dry Cleaning and Laundry Industry Award

[MA000094] Fitness Industry Award

[MA000005] Hair and Beauty Industry Award

[MA000009] Hospitality Industry (General) Award

[MA000081] Live Performance Award

[MA000033] Nursery Award

[MA000013] Racing Clubs Events Award

[MA000058] Registered & Licensed Clubs Award

[MA000119] Restaurant Industry Award

[MA000082] Sporting Organisations Award

[MA000102] Travelling Shows Award

[MA000090] Wine Industry Award


Need support in checking award rates?


There are resources available to support employers in meeting their obligations for the national minimum page and award minimum wage. You can access the following to support you in updating your employees' wages accurately:


Using the Fair Work online pay calculator

The Fair Work online pay calculator has been updated to reflect these new minimum wages, allowing employers to find the direct pay rates quickly and easily for their employees. The Fair Work calculator is free to use and easily accessible online.


Hire a qualified accountant to support you in changing over wages

If you need additional support for a professional to decipher your award category or update wages correctly, a professional accountant can help. Our team at 360 Accounting Services can provide the help you need to update the national minimum wage in Melbourne. Get in touch today to find out more.


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