AIR PILOT AWARD RATES INCREASE

A Fair Work Commission’s review panel has recently approved a 5.75% increase in Award rates, along with an 8.6% rise in the national minimum wage, effective from July.

As a result of the FWC Annual Wage Review 2022-23 decision, around 2.6 million Australian workers will receive these pay rises from the first full pay period on/after 1 July.

The review panel emphasised that the decision, handed down on 2 June, would have a limited effect on the broader economy and noted there is no evidence in Australia of an upwards wageprice spiral despite a very tight labour market.

Pilots employed under the Air Pilots Award 2020 are entitled to this increase. In addition, all allowances in the Award calculated from the ‘Standard Rate’ in the Award will also increase by the 5.75%, while other allowances such as loss of licence, accommodation, meals and transport allowances (that are subject to a separate indexation) are also to be adjusted over the coming weeks.

The AFAP trusts that employers will pass on these mandatory increases to pilots employed under the Award. Members should contact the AFAP for advice if this does not take place from the first full pay period on or after 1 July 2023.

This increase in Award wages and allowances will not affect members (or other workers) covered by an enterprise agreement.

Unrelated to this review, but also importantly, the Superannuation Guarantee Rate increases from 10.5% to 11%, also effective from 1 July 2023. Please check with your superannuation fund to ensure that the increased rate of employer contribution has started to be paid into your nominated fund.