4.6% Modern Award Increase & 5.2% National Minimum Wage

Fair Work Commission Annual Wage Review

15th June, 2022

Today the Fair Work Commission handed down its Annual Wage Review 2022-2023 decision, increasing the national minimum wage by 5.2% and minimum wages in modern awards by 4.6%.

National Minimum Wage Increase 

  • The national minimum wage is now $21.38 per hour (up from $20.33) or $40 per week (up from $772.60)

Modern Award Wage Increase

  • Award wage rates below $869.60 per week will increase by $40 per week.
    This is equivalent to a Support Services Level 1 – 2 and Student EN’s.
  • Award wage rates above $869.60 per week will increase by 4.6%.
    This is equivalent to a Support Services Level 3 – Level 9, all Health Professional employees, all registered nurses and qualified EN’s.

Increases to the rates of pay in the Health Professional and Support Services Award and Nurses Award increase from the first full pay period, on or after 1 July 2022. Expense related allowances (such as travel allowance, meal allowance) are also increased as a result of the decision.

Practices and businesses are reminded that for staff…

  • Paid the minimum hourly rate of pay, their ordinary hourly rate must increase in line with the new modern award rates of pay from the first full pay period, on or after 1 July 2022.
  • Paid above the modern award hourly rates of pay or a salary, there is no requirement to automatically increase the current rates of pay, as this increase can be absorbed by the excess amount you’re already paying.
  • Paid under an individual flexibility agreement, these calculations must be reviewed to ensure the better off overall test is satisfied.
  • Whose above award hourly rate of pay is now less than the new modern award minimum hourly rate of pay then their current rate of pay must be increased so that it is equal to or greater than the modern award minimum rates.

Practices and businesses can at their discretion however, lift above award rates of pay and annual salaries as a gesture of goodwill and retention strategy.

Now that we know rates are changing, HIES will prepare wages summaries for members that set out the ordinary rates of pay for HPSS and nursing staff. These will be posted to members over the coming weeks.

In the meantime, if you have any questions about increasing wage rates contact HIES to discuss.

Note | The Annual Wage Review decision applies to all private sector employers and employees, except those in Western Australia who operate as sole traders, partnerships or other unincorporated entities.