What Does the Annual Wage Review Decision Mean for Your Business?
Ross Thompson (MRCSA)
Infinity Staff Global | Infinity Staff Blue | NPA Worldwide Business Partner | TEAM Network Member | Recruiting Across the USA/AFRICA/UK/AUSTRALIA/EUROPE
The 2021 Annual Wage Review Decision was issued by the Expert Panel of the Fair Work Commission on 16th June 2021. Read more here. It has determined that the National Minimum Wage and Modern Award wage rates should be increased by?2.5%.
The Panel cited a range of reasons for their decision to increase wages by 2.5% including the markedly better economic environment and the scheduled Superannuation Guarantee increase.
What does the decision mean for your business?
Here is a summary from Aged and Community Services Australia (ACSA) to help you understand the impact this decision will have on your organisation.
Award Covered Employees
The Modern Awards operating most commonly in the Aged Care sector include:
If some or all of your employees are paid minimum award wages, the increase will apply to them. It will also apply to a range of allowances within the awards. The increase does not affect award covered employees who already get paid more than the new minimum wage rates.
Enterprise Agreement Covered Employees
If your business utilises Enterprise Agreements (EAs), you will need to review the base rates of pay in those EAs to ensure they meet the new minimum rates of pay. You must also ensure that if there is any reference to an award contained in your allowances schedules e.g. km allowance increases as per the Aged Care Award, that you review those monetary values as well.
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What happens next?
The FWC will issue draft determinations and orders about how this decision affects the awards. It will then update the pay rates in each award. The Fair Work Ombudsman will also update their pay tools, information and resources with the new rates.
Further Information
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