Increase to the Minimum Wage

Big news – the Fair Work Commission has ruled the minimum wage will increase by 5.2%.

This means the new hourly rate (for full and part-time employees over the age of 21) will be going up to $21.38.

 

What might this mean for you?

 

Well, currently in jobs such such as aged and disability care, fast food, and supermarkets, many only offer minimum wage. This means that people will now be getting paid more for their work in these big (and vital) industries.

If you’re working in one of these jobs, this means your wage will go up. Of course, this depends on whether you’re currently earning the minimum wage.

The wage increase is set to begin on July 1.

Some other people on award wages, which includes industries such as aviation and hospitality, can expect a wage increase of 4.6%. This is set to come in on October 1.

Note that, by law, employers are required to pass these increases on to their employees. You shouldn’t have to ask for a raise. If you’re unsure or have any concerns, you can always contact the Fair Work Commission.

 

What if I’m under 21?

 

Even though you’ll still earn slightly less than the base minimum wage, you’ll still be set to see an increase.

This is because the minimum wage for people under the age of 21 is based on a percentage of the base minimum wage – so if it goes up, so does your wage.

Say, for example, that your wage is 85% of the base minimum wage. Previously, this means you’d be earning around $17.28 an hour. With the new increase to the base minimum wage, your wage will also go up to around $18.17 an hour.

 

Why is the minimum wage going up?

 

It’s kind of complex. But you’ve probably noticed that the price of a lot of things have been going up – fuel, groceries, etc. The increase in the minimum wage is designed to ensure people can still afford to buy basic necessities – that is, that their wage is consistent with the cost of living.

 

Want to know more?

 

You can read more about the minimum wage and how it’s set by the Fair Work Commission here: https://www.fwc.gov.au/agreements-awards/minimum-wages-and-conditions

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