On 1 July 2022 the National Minimum Wage increased by 5.2% and the award minimum wages increased by 4.6% (fairwork.gov.au). This means that about $40 extra per week would be landing in the pockets of those employed under these agreements.
For employees, this is good news, however some might be left wondering why their pay cheque hasn’t increased yet. Below I break down what steps you should take, or why your pay might not increase.
Check your eligibility
Not everyone in Australia will have their wage increase because of this decision by the Fair Work Commission. The decision affects the pay of approximately 2.7 million Australians who are on the national minimum or those who work under an award. If you’re not sure which award applies to you, you can use this tool here.
Calculating your new pay rate
If you fall within an award or receive the national minimum, you can calculate your new pay rate (including allowances) with this tool here.
Once you have calculated your updated wage, we recommend speaking with your employer to discuss having the updated rate reflected in your employment agreement.
If you work within the aviation, tourism, or hospitality sectors, it is important to note that the wage increase has been delayed until 1 October because of their slower economic recovery post Covid.
Employer refusing to increase wage
If your employer refuses or is unnecessarily delaying the increase of your wage, and you fall outside of one of the delayed sectors, you should seek legal advice.
You can obtain generic initial advice from the Fair Work Commission, however if your situation is more complex, it is best to obtain personalized advice from an employment lawyer. It can be hard to navigate these situations with employers, therefore obtaining the correct advice up front is important.
Our employment law team offers free 30-minute consultations, which will help you understand what your next steps should be suited to your personal situation. To book in, call Boylan Lawyers on 08 8632 2777.
Alison Martens, Senior Associate at Boylan Lawyers, has built an impressive career within the employment law area over her seven years practicing.