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Fair Work Commission announces increase to minimum wage

Employer Services (ES) has advised that at 10.00am, on 15 June 2022, the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling. 

Acknowledging the impact of high cost of living pressures and record inflation, the FWC has awarded a sizeable increase to Modern Award base rates of pay as follows:

•    $40 per week (flat amount) increase for Modern Award weekly rates currently below $869.60 per week; and
•    4.6% increase for Modern Award weekly rates currently at or above $869.60 per week. 

In real terms for ACA Qld Members, this means all adult weekly rates for Level 3 or above of the Children’s Services Award 2010 and all weekly rates applicable within the Educational Services (Teachers) Award 2020 will be subject to the 4.6% increase identified above. The $40 per week (flat amount) increase will only apply to adult weekly rates for Levels 1 and 2 (unqualified adults) within the Children’s Services Award 2010.   

Rates of pay for Juniors and trainees will also increase on a proportionate basis. 

Wage-related allowances (e.g. broken shift), which are calculated as a percentage of the ‘standard rate’, will of course increase as the ‘standard rate’ they are calculated from increases. Furthermore, expense-related allowances, (e.g. meal allowance), will increase, as necessary, subject to the formal determinations issued by the FWC.

The increase will apply from the first full pay period commencing (ppc) on or after 1 July 2022. 

In delivering this year’s decision, the Minimum Wage Panel observed that granting a “proportionately higher increase” to the lowest paid award classifications would target the “particularly vulnerable” and “protect the real value of wages of the lowest paid workers”. 

Whilst the decision will be welcomed by unions and employees, employers will likely feel the strain of such a significant wage increase. Despite this, both the Children’s Services Award 2010 and the Educational Services (Teachers) Award 2020 will receive the wage increase from ppc 1 July 2022
What happens now?
ES will start the process of calculating new wages and allowances for both Modern Awards. ES respectfully requests the patience of ACA Qld Members as they work to release the updated Modern Awards in a timely fashion. Whilst ES always strives for maximum efficiency, owing to the lateness of this year’s decision – and the fact that the FWC has elected to apply an unusual, two-pronged method of increase that has not been utilised for over a decade – it is unlikely updated rates will be able to be made available much earlier than 1 July 2022.
Separate email notifications will be circulated to Members when the updated versions of the Modern Awards are available on the ES website.  
Members who have questions about this information are invited to contact the Employer Services Team on (07) 3220 3500.

ACA Qld Team

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