AHA | SA MEMBER INFORMATION
Annual Wage Review 2021-22 OWEN WEBB - AHA | SA WORKPLACE RELATIONS MANAGER
On 15 June 2021, the Fair Work Commission Annual Wage Review Panel (Panel) handed down their decision in the 2021-22 Annual Wage Review. The Panel decided to increase the modern award minimum wages by 4.6% subject to a minimum increase for adult award classifications of $40 per week. The $40 per week increase is based on a 38-hour week for a full-time employee. The Panel determined that there were exceptional circumstances that existed which justified a delay in the operative date of the wage increase for 10 Modern Awards in the aviation, tourism and hospitality sectors.
a number of submissions from various parties including state and federal government, unions and employer associations.
changes in the economic context weighed in favour of an increase to the NMW and modern award minimum wages.
The Australian Council of Trade Unions (ACTU) proposed a 5.5 per cent increase to the National Minimum Wage (NMW) and modern award wages, whilst the Australian Chamber of Commerce and Industry and Australian Industry Group proposed an increase to minimum wages of between 2.5 and 3 per cent.
In reaching their conclusion as to the quantum of the wage increase, the Panel concluded that if they were to accept the proposed wage increases of the employer bodies it would result in a reduction in real wages for award reliant employees. Conversely, they accepted the need to constrain inflationary pressures that may arise from their decision and factors such as the 0.5 per cent increase in the Superannuation Guarantee rate and the removal of the $450 per month superannuation threshold from 1 July 2022.
SUBMISSIONS
The Panel took into consideration economic data from a range of sources including the Reserve Bank of Australia’s May 2022 Statement on Monetary Policy and the Consumer Price Index over the year to the March quarter 2022.
The Panel as part of the Annual Wage Review process received
Having reviewed the economic data, the Panel concluded that the
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INCREASE IN MODERN AWARD WAGES In regard to the quantum of the increase, the Panel determined that Back to Contents
