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Annual Wage Review 2020-21 – 2.5% increase


The FairWork Commission (FWC) has completed their Annual Wage Review 2020-2021 and have come to a decision to increase the National Minimum wage by 2.5%. The increase, also applied to Award wages, will directly affect 2.2 million Australians. This will mean that the National Minimum Wage will be raised to $772.60 per week, or $20.33 per hour.


The FWC stated that the wage increase is due notably is the economic recovery that Australia has seen since the COVID-19 lockdowns of 2020. The FWC made mention of the possible negative impacts which may affect the recovering economy including domestic outbreaks, disruptions to other major economies and Australia's overseas trade, as well as the vaccine rollout plans. However, they believe that the increased wage will not adversely impact the economic recovery. The FWC also took in to account the 0.5% increase in Superannuation Guarantee Contribution which comes into effect on 1 July 2021.


What this means for your business: Depending on which Award your business operates under will determine when the increase will occur. The increase will come into effect in three stages across the latter half of 2021. If you pay more than 2.5% above Award rates, you will not be affected by these changes.

Timing of award changes: The first Awards to change will be effective from 1st July 2021 including Fast Food Industry, Commercial Sales, Construction, Mining, and Manufacturing Awards.

The second stage from 1st September 2021 will apply to General Retail Industry Award 2020.

The final stage will be 1st November 2021 and will increase the re