Fair Work Commission increases minimum wage – is now the right time?


The Fair Work Commission (FWC) has raised the minimum wage by 5.2% to $812.60 per week, and 4.6% for all full time and part time Award covered employees in a move touted as a step in the right direction by some, and harsh timing for small business by others.

This will translate to approximately an extra $40 per week, or $21.38 per hour in the Federal jurisdiction (up from $20.33 per hour).

The change will come into effect on 1 July 2022 and most Award increases from 1 July 2022 (some Award rates will only apply from 1 October 2022) which is proving to be a good week for employees, with the scheduled superannuation rise also coming into effect on that day.

So, what does this all mean for you?

If you’re on minimum wage, you can expect to see a pay rise of $1.05 an hour from 1 July 2022.

But if you’re on an Award rate, you may only see small pay increase (depending on your current rate).

If you’re a small business owner, you may be feeling the pinch as you try to cover the increased costs.

However, it is important to review any existing staff arrangements now to ensure ongoing compliance with these upcoming changes.

We are expecting the State jurisdiction to follow suit and will report on the increase in due course. 

If you are not sure whether you are covered by the State or Federal employment laws or to discuss any of the above increases, please contact Natalie Knight at Lotus Legal on (08) 9305 9529 or email natalie@lotus-legal.com.au.