Minimum Wage & Superannuation Increase Explained

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Minimum Wage & Superannuation Increase Explained

There has been some confusion on what the minimum wage increase and superannuation increase means to small business employers. Does this mean all employees wages increase? Despite what many employees are thinking from what they see on the TV, no it doesn’t. It depends on your employee’s current employment terms. 


The Fair Work Commission has handed down their decision in relation to minimum wage increases. From 1 July 2022, wages will increase as follows:

  • Minimum wage for award-free employees will be $21.38 per hour or $812.60 per week (an increase of 5.2%)
  • Minimum award rates for award-covered employees will increase by 4.6% for individuals who earn at least $869.60 per week. For those who earn below this, their wage will increase by $40 per week.

These increases will be delayed until 1 October 2022 for a small group of awards (including the Hospitality Industry (General) Award 2020 and Restaurant Industry Award 2020).

DOES IT APPLY TO ALL EMPLOYEES?

The short answer is NO. This increase applies only to those on minimum wage, either under an Award wage or not under an Award wage.  

It does not apply to employees who are paid ABOVE the Award. Your legal requirement is that your employees are

SUPERANNUATION - JUUST A REMINDER THIS IS INCREASING TO 10.5%


If your employee is paid a wage PLUS superannuation your accounting software should be able to deal with this for you. If your employee is paid a wage package INCLUSIVE of super, you will need to ensure your accounting software is correctly updated.


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