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5.2% increase to national minimum wage and 4.6% increase to modern award minimum wage rates
Wage rise adds more pressure
Dear Reader !
The Fair Work Commission awarded a 5.2% increase in the national minimum wage and a 4.6% increase for modern award minimum wages (or a flat rate of $40 per week for employees earning below $869.60 per week) in addition to the 0.5% Superannuation Guarantee increase on 1 July, far above our recommended position of a 2.5 – 3% increase.
Increases will operate from 1 July 2022. Increases in the Aviation, Tourism and Hospitality sectors will take effect from 1 October 2022.
Business NSW Chief Executive Daniel Hunter said in response to the decision:
“Business NSW agreed that there should have been a rise in wages, with our submission to the Fair Work Commission advocating that up to 3% on top of the 0.5% rise to the Superannuation Guarantee was a sensible common ground. The Commission has disagreed.”
“Business NSW estimates today’s ruling equates to around a $2.5 billion increase in annual costs to NSW businesses.
“This increase is going to take the wind out of the sails of a number of business owners. Despite what many think, no industry has fully bounced back from the ravages of the COVID pandemic, and business owners are battling to open their doors each day.
“In the short term it seems that prices will continue to rise as businesses need ways to cover this dramatic rise in staff costs.”