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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.

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