FINANCIAL YEAR 2022–2023: ACTIONS FOR EMPLOYERS
Date: June 30, 2022
The Fair Work Commission (FWC)’s decision on minimum pay increases the national minimum wage by 5.2% and minimum modern award rates by 4.6%.
From 1 July 2022, the national minimum wage will be $812.60 a week or $21.38 an hour.
The minimum rates of pay in modern awards will be increased by 4.6% subject to a minimum increase for adult award classifications of $40 per week. The minimum rates increase in most modern awards is effective from 1 July 2022, albeit the increase will not take effect in some awards until 1 October 2022.
The superannuation guarantee rate is 10.5% effective from 1 July 2022. The superannuation rate is currently scheduled to progressively increase to 12% by July 2025.
The high income threshold is $162,000 effective from 1 July 2022.
ISSUE 1: INCREASE TO AUSTRALIAN NATIONAL MINIMUM WAGE AND MODERN AWARD RATES
The FWC has granted a 5.2% increase to the national minimum wage and a 4.6% increase to the minimum pay rates under modern awards. The weekly national minimum wage is $812.60 per week, or $21.38 per hour, with effect from 1 July 2022. The national minimum wage will apply to any employee who is not covered by a modern award.
The increase to minimum award rates will take effect on 1 July 2022 in relation to most modern awards. However, the increase to minimum rates will not take effect until 1 October 2022 in the following modern awards:
- Aircraft Cabin Crew Award 2020
- Airline Operations – Ground Staff Award 2020
- Air Pilots Award 2020
- Airport Employees Award 2020
- Airservices Australia Enterprise Award 2016
- Alpine Resorts Award 2020
- Hospitality Industry (General) Award 2020
- Marine Tourism and Charter Vessels Award 2020
- Registered and Licensed Clubs Award 2020
- Restaurant Industry Award 2020
ISSUE 2: INCREASE TO MINIMUM AUSTRALIAN SUPERANNUATION CONTRIBUTIONS
Minimum superannuation contribution rates will be as follows:
- From 1 July 2022 – 10.5%;
- From 1 July 2023 – 11%;
- From 1 July 2024 – 11.5%;
- From 1 July 2025 – 12%.
ISSUE 3: INCREASE TO HIGH INCOME THRESHOLD
The high income threshold is $162,000 with effect from 1 July 2022. This is relevant to the issue of whether an employee is able to make an unfair dismissal claim and when they can, it imposes a cap on potential compensation. Where an employee earns above the high income threshold (and they are not covered by an award or enterprise agreement) the employee may not pursue an unfair dismissal claim against their (previous) employer. The unfair dismissal compensation cap is $81,000 from 1 July 2022.
CONTACT
Please contact us if your organisation requires assistance with employment law or industrial relations matters.
Whitehall Workplace Law
Level 14, 330 Collins Street, Melbourne, VIC 3000
This publication is for general reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice should always be obtained before taking any action based on this publication.
Liability limited by a scheme approved under professional standards legislation.
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WORKPLACE LAW
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