Following the Annual Wage Review 2021, the Fair Work Commission has announced a 2.5% increase to minimum wages.
This rate is higher than the increase which was ordered last year of 1.75% and higher than the 1.1% CPI increase of last year (ensuring that wages are kept above the rate of inflation).
The 2.5% will also apply to all award wages, with the award increase happening in 3 different stages. For the Real Estate Industry Award and the Clerk (Private Sector) Award the increases will come into effect as of 1 July 2021.
What Should You Do?
For our Agent’s Help Desk subscribers, Apex HR will let you know when the Fair Work Commission have the new minimum wages available in the form of updated pay guides.
Employers paying above-award payments should also review such arrangements to ensure that they are high enough to accommodate the increases (provided they are also supported by the necessary individual flexibility or other agreements).
Further, as a minimum, from 1 July 2021 employers’ minimum superannuation contributions will be increased to 10% (calculated against Ordinary Time Earnings) to avoid liability to pay the Superannuation Guarantee Charge.