National Wage Case Decision 2021/22

IR E-Alert Issue 13 - 16 June 2021

The Fair Work Act 2009 (the Act) requires the Fair Work Commission's Expert Panel (Minimum Wage Panel) conduct and complete a review of minimum wages in modern awards and the national minimum wage in each financial year. The Minimum Wage Panel of the Fair Work Commission today (Wednesday, 16 June 2021) released its National Wage Case Decision.

The decision provides that:

All Modern Award classification scales shall increase by 2.5% rounded to the nearest ten cents.
The Federal Minimum Wage for award free employees shall be $772.60 per week or $20.33 per hour. The hourly rate has been calculated on a 38-hour week for a full-time employee. This constitutes an increase of $18.80 per week to the weekly rate or 49 cents per hour to the hourly rate.
The increases shall apply from the first pay period on or after 1st July 2021 for the majority of modern awards, including the following:
- Road Transport and Distribution Award 2020
- Road Transport (Long Distance Operations) Award 2020
- Clerks – Private Sector Award 2020
- Manufacturing & Associated Industries and Occupations Award 2020
Award rates within the aviation, tourism, fitness and retail industries will increase from either 1 September or 1 November 2021.

Members who have Workplace Agreements in place will need to ensure that their agreement rates meet, or exceed, the new minimum award rates and, if the agreement pay increases are linked to the panel's decision, the pay rates will need to be adjusted within the Workplace Agreement accordingly.

The increases can be absorbed into any amounts now being paid over and above the relevant minimum rates. However, be aware the Fair Work Ombudsman makes it clear that over award pay-rates can NOT off-set other award entitlements (e.g. penalties or loadings) unless there is a formal agreement in place. Rates for juniors, trainees and apprentices will also be adjusted, as usual, on a proportionate basis.

QTA, through the services of our Employment Relations Manager Ezra Pyers, can provide assistance to any operator who seeks to formalise the employment conditions in their workplace in an Agreement certified by the Fair Work Commission.

Members will receive amendments to their relevant Modern Award(s) specifying the new Pay Rates adjusted by the 2.5% increase, once the Awards are formally amended by the Fair Work Commission. We hope this will be within a short timeframe and prior to the end of June. Members may however budget at the rate increased as provided in this Alert.

Relevant Link - Summary of the decision
Relevant Link - Full copy of the decision

Further Information
Should members have any questions or seek any explanation in relation to the above, including employment contracts for their employees or any other employment relations matters, please contact Ezra Pyers QTA's Employment Relations Manager, on Phone 07 3394 4388 | M 0411 123 185| E ezra@qta.com.au