The Fair Work Commission has announced a 5.2% increase to the National Minimum Wage (NMW) from July 1 in an effort to support low-paid workers who are “particularly vulnerable” in a time of rising inflation.
The new NMW will now be $812.60 a week, an increase of $40, or $21.38 an hour. Additionally, the Commission has also decided to increase modern award wages by 4.6% subject to a minimum increase for adult award classifications of $40 per week.
The award increases will take effect on July 1 with the exception of specific industries which include aviation, hospitality and tourism due to “exceptional circumstances”, which will take effect on October 1.
The dramatic increase of 5.2% comes as a result of the sharp rise in the cost of living, with inflation currently at 5.1% and expected to increase by the end of the year.
|YEAR||NMW increase||CPI increase|
Source: Fair Work Commission
We will see substantial Industrial Relations change under the ALP government. If you require assistance in relation to any of the information provided above, Pragma Lawyers can provide advice to you and your business to minimise your future risk. Contact our Employment team today by clicking here or call us on (08) 6188 3340.