ARTICLE · 14 SEPTEMBER 2021

What does the minimum wage increase mean for my business?

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Employers must ensure that they meet this updated minimum payment or risk underpayment and financial penalties.

AustraliaEmployment and HR

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Each financial year, the Fair Work Commission reviews the minimum wage and decides whether to increase this amount and if so, by what percentage. As of 1 July 2021, both the national minimum wage and the award rates have increased by 2.5%. This decision accounts for (without limitation) the current COVID-19 context and its impact on businesses and also inflation. This article explains what the changes are and what this means for you as an employer.

The Minimum Wage Increase

On 16 June 2021, the Fair Work Commission approved a 2.5% increase to the minimum wage and the award rates. As a result, the national minimum wage (applicable to award-free employees) has increased from $19.84 to $20.33 per hour and $753.80 to $772.60 per week.

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