A reminder after our Bulletin last week that from the first full pay period on or after 1 July 2022 new Award rates apply.
The Fair Work Commission has ratified its decision to increase modern award minimum wages by 4.6 per cent 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. In effect, modern award minimum wage rates above $869.60 per week will receive a 4.6 per cent adjustment, wage rates below $869.60 per week will be adjusted by $40 per week from 1 July 2022.
There is also a new minimum wage of $812.60 per week or $21.38 an hour for an adult from 1 July 2022. This is a substantial 5.2% increase for lower paid workers, and 4.6% for higher level Award classifications.
As a result, increases to the minimum rates in the Road Transport and Distribution Award 2020, the Road Transport (Long Distance Operations) Award 2020, and the Clerks—Private Sector Award 2020, will apply and operate from 1 July 2022 (these are the most common Awards which cover NatRoad members).
If you pay award rates you will need to increase the pay rates for your employees from the first full pay period on or after 1 July 2022.
Even where you pay above award wages, you should review your pay rates against the new award wages to ensure you are still paying at or above the minimum rates of pay.
If your business has an enterprise agreement you will need to make sure that the base rate of pay under the enterprise agreement is not less than the base rate of pay that would be payable under the modern award.
The new rates for the road transport awards are on our website. There has also been an increase to the Superannuation Guarantee Rate from 10% to 10.5% which also took effect on 1 July 2022.