Award Wage Increase for Hair & Beauty
In June 2021 the Fair Work Commission announced a 2.5% increase to the national minimum wage and all award wages. The increase to award wages happened in 3 stages, with the final increase starting from 1 November 2021.
For HIES members and clients, this latest award increase impacts:
To see the Fair Work website relating to the Hair & Beauty Award, click here.
What does this mean for you and your business?
If your business pays:
- The minimum wage rates in accordance with the award, you must increase the rate of pay for all staff from the first full pay period on or after 1 November 2021.
- Above the award minimum rates, check your rates of pay to ensure they are equal to or greater than the new award rates of pay. Where your above award rate is less than the new rate of pay, it must be increased. Where your above award rate remains higher than the new award minimum rates, then there is no requirement to increase the rates unless you have a contractual obligation to do so.
- Uses individual flexibility agreements, it is important you review the BOOT – Better Off Overall Test for each person to ensure the person is compensated for all hours worked and the IFA arrangements do not disadvantage the person in comparison to what they would be entitled to be paid under the award.
- Staff on salaried arrangements, you should also review the annual salary amount to ensure the annual amount and composite hourly rate of pay compensates the person for all hours, penalty rates, shift loadings and allowances they would otherwise be entitled to receive under the award. This process is also referred to as the BOOT.
Should you have any questions about the BOOT process, increasing rates of pay or any other workplace matter please contact HIES to discuss.