Fair Work Commission Announces 2.5% Wage Increase

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The Fair Work Commission (FWC) has announced that the Federal Minimum Wage will increase by 2.5% as from the first pay period to commence on or after 1 July 2021.

This increase will then flow to wage rates in all Awards. However, due to the on-going impact of COVID upon various industry sectors, the increase has been deferred to a number of Awards, including the accommodation, travel, food and retail sectors.

In its decision the FWC stated “While the economic recovery is well underway and the overall outlook is much more positive than it was last year, the Panel acknowledged the risk of domestic outbreaks and ongoing disruptions to other major economies. COVID-19 outbreaks necessitating further containment measures remain a significant risk and, as the Commonwealth submits ‘even localised outbreaks could have an impact on consumer and business confidence weighing on consumption and investment’”

The FWC has decided that the following Awards will have the increase deferred until 1 November 2021.

  • Air Pilots Award 2020

• Aircraft Cabin Crew Award 2020

• Airline Operations – Ground Staff Award 2020

• Airport Employees Award 2020

• Airservices Australia Enterprise Award 2016

• Alpine Resorts Award 2020

• Amusement, Events and Recreation Award 2020

• Dry Cleaning and Laundry Industry Award 2020

• Fitness Industry Award 2020

• Hair and Beauty Industry Award 2010

• Hospitality Industry (General) Award 2020

• Live Performance Award 2020

• Mannequins and Models Award 2020

• Marine Tourism and Charter Vessels Award 2020

• Nursery Award 2020

• Racing Clubs Events Award 2020

• Racing Industry Ground Maintenance Award 2020

• Registered and Licensed Clubs Award 2020

• Restaurant Industry Award 2020

• Sporting Organisations Award 2020

• Travelling Shows Award 2020

• Wine Industry Award 2020.

The General Retail Industry Award 2020 will have the increase deferred until on 1 September 2021.

Should you have any queries in relation to the increase and its deferral for some Awards, please do not hesitate to contact us at Effective Workplace Solutions.


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