Increase to the Minimum Wage from 1 July 2022

Share Post:

Share on facebook
Share on linkedin
Share on twitter
Share on pinterest
Share on email

Fair Work Commission boosts wages for the lowest paid

Today, the Fair Work Commission announced an increase to the National Minimum Wage of 5.2%, which equates to $1.05 per hour or $40 per week. From 1 July 2022, the minimum wage increases to $21.38 an hour, up from $20.33 an hour.

Around 180,000 workers are currently on the minimum wage, and will see the most significant benefit from the FWC’s wage decision. In addition around 2.7 million Australians who are employed on Modern Awards will see their pay increase by 4.6%, come 1 July.

This increase has been welcomed by advocates of low income employees, and represents the highest wage increase since 2006, coming at a time where all Australians are facing increased cost of living pressures.

Small Business Express Concerns

On the contrary, small business operators have expressed disappointment in the size of the increase, and many believe this decision will hurt small business operators and in some case threaten the viability of small businesses to continue. Many businesses are still recovering from COVID restrictions, dealing with increased costs including electricity, freight and other inputs, as well as a very tight labour market. This wage increase, on top of the mandatory increase to super guarantee from 10% to 10.5% on 1 July is causing anxiety amongst the small business community.

Need advice?

If you are a business owner who needs assistance with Award application or a pricing review to assist your business deal with increasing costs, please get in touch with our expert team.

Stay Connected

More Updates