Fair Work Ombudsman Increases Minimum Wage by 5.2%

In June of 2022 the Fair Work Ombudsman announced an increase to the minimum wage of 5.2%, raising the National Minimum Wage by $40 per week to $812.60 per week or $21.38 per hour. The change in wages came into effect on the 1st of July 2022 and were a result of the Annual Wage Review 2021–22.

The Fair Work Commission stated that these changes would impact more than 2.7 million Australian workers. Prime Minister Anthony Albanese made the minimum wage rise a key aspect of his election campaign, originally advocating for a pay rise of at least 5.1 per cent to keep in line with inflation.

Mr. Albanese praised those working on minimum wages and highlighted their work helping Australia through the pandemic:

"The truth is that many of those people who are on the minimum wage are the heroes that saw us through the pandemic...They deserve more than our thanks, they deserve a pay rise, and today they got it."

Sally McManus, head of the Australian Council of Trade Unions, welcomed the Fair Work Commission's changes to the minimum wage but was disappointment that the changes for workers in 10 awards within hospitality, tourism and aviation had been delayed:

"This decision is one that is reasonable and it is fair...It means that for low paid workers, [they] will have a better ability to pay rent and pay for the groceries and to pay for energy bills as well...All Australians should share in the recovery and share in the growth that they are producing at the moment, and they are not."

The awards referenced include those listed below. The minimum wage increases to workers on these awards are to take place on the 1st of October 2022:

Aviation

• Air Pilots Award [MA000046]

• Aircraft Cabin Crew Award [MA000047]

• Airline Operations - Ground Staff Award [MA000048]

• Airport Employees Award [MA000049]

• Airservices Australia Enterprise Award 2016 [MA000141]

Hospitality

• Hospitality Industry (General) Award [MA000009]

• Registered and Licensed Clubs Award [MA000058

• Restaurant Industry Award [MA000119]

Tourism

• Alpine Resorts Award [MA000092]

• Marine Tourism and Charter Vessels Award [MA000093]

Sources & Further Reading

https://www.fairwork.gov.au/newsroom/news/get-set-for-a-minimum-wage-increase

https://www.fwc.gov.au/hearings-decisions/major-cases/annual-wage-reviews/annual-wage-review-2021-22

https://www.abc.net.au/news/2022-06-15/minimum-wage-pay-increased-fair-work/101153178