On 15 June 2022 the Fair Work Commission’s Expert Panel (Panel) handed down its Annual Wage Review Decision (Decision) for 2021-22.

The QHA can advise members that there will be an increase, however there are many facets and timeframes to the Decision. Details of the wage increases and when they take effect are discussed in this article.

The Panel’s determined wage increases will apply to:

  1. All modern award wages; and
  2. The National Minimum Wage (‘NMW’).

Click HERE if you would like to view the Decision summary.

1) MODERN AWARD WAGES RATES INCREASE

All modern award wages will increase:

  • By a flat rate amount of $40.00* per week where the current full-time weekly rate is less than $869.60 per week; and
  • By 4.6% where the current full-time weekly rate is above $869.60 per week.

*The $40 per week increase is based on a 38-hour working week for a full-time employee.

WHEN THE INCREASE WILL HAVE EFFECT

Increases to modern award wages in the hospitality, tourism and aviation industries will take effect at a later date than the majority of modern awards. Please read on below for details:

Hospitality Industry (General) Award 2020

The above stated increase will take effect in the Hospitality Industry (General) Award 2020 (‘HIGA’) from the first full pay period commencing on or after 1 October 2022.

The above referred to wage increase means the:

  • Classifications of Level 4 and above will receive a 4.6% increase, and
  • Classification levels covering the introductory level and levels 1, 2 and 3 will be increased by a flat rate of $40.00* per week.

*The $40 per week increase is based on a 38-hour working week for a full-time employee. 

Other award

The following awards that the QHA produces wage sheets for will also increase from the first full pay period commencing on or after 1 October 2022:

  • Registered and Licensed Clubs Award 2020
  • Restaurant Industry Award 2020

Awards with no delay in the increase operative date

The following awards that the QHA prepares wage sheets for will increase from the first full pay period commencing on or after 1 July 2022

  • Amusement, Events and Recreation Award 2020
  • Clerks—Private Sector Award 2020
  • Joinery and Building Trades Award 2020
  • Manufacturing and Associated Industries and Occupations Award 2020
  • Hair and Beauty Industry Award 2010
  • Live Performance Award 2020
  • Miscellaneous Award 2020*
  • Plumbing and Fire Sprinklers Award 2020
  • Vehicle Repair, Services and Retail Award 2020

* relevant for the national training wage.

2) NATIONAL MINIMUM WAGE INCREASE

For those employees who are not covered by a modern award or agreement, the NMW is the legislated base rate of pay.

The NMW will increase by 5.2% from the first full pay period commencing on or after 1 July 2022 with:

  • The NMW increasing to $812.60 per week for a full-time employee, or $21.38 per hour.
  • The increase representing a weekly increase of $40.00 per week.

What is the Pay Cycle for the purposes of the “first full pay period”?

For awards that increase on 1 July:

With regard to the operative date, where an employer’s pay period commences prior to the date the increase will have effect, for example, on 29 June 2022 (and the increase is 1 July), the increase provided in the Fair Work Commission’s wage increase decision will not affect wages until the next pay cycle.

This is due to the pay cycle commencing prior to 1 July – the Decision states it applies to a full pay cycle that commences either on, or after, 1 July.

To break it down further, if your pay cycle starts on Friday, 1 July, or after that date, the award wage increase will apply from that pay cycle.

For the HIGA and other hospitality awards:

The same concept to above applies.

If your if your pay cycle starts on Saturday, 1 October, or after that date, the award wage increase will apply from that pay cycle.

NEW WAGES SHEETS

The QHA will prepare its wage rates and allowances guides for the modern awards listed in this
article and will notify members as they are available.

For those awards with a delayed operative date, the updated wage sheets will be made available closer to the date of operation.

How Will They Be Made Available?

Automatically via the ER Bulletin!

ER Bulletin subscribers will automatically send an ER bulletin, with a link to download the updated Wage Guide PDFs.

Alternatively, send an email to er@qha.org.au with your details, including the venue name, and the award wages you seek.

UPDATED RATES FOR COLLECTIVE AGREEMENTS

Members with existing Collective Agreements (or other formally ratified documents) can seek for the rates payable in accordance with the Agreement to be updated in line with the Decision.

Where the QHA has drafted your Agreement, we can update your wage schedules for a nominal fee of $340.00 inc GST- this includes up to 5 wage schedules. A higher fee will apply for a larger number of wage schedules.

For Agreements drafted by an external party, the QHA can assist you to update your wage schedules. Please contact the Department for more information and an estimate of fees.

Non QHA members can also access this service at the non-member consultancy rate of $275.00 plus GST per hour.