Business 360 explain all you need to know about the annual minimum wage increases for your business.


The Fair Work Commission has announced an increase of 2.5% on the minimum rates of pay, allowances and some additional weekend and shift loadings. This will be effective for most modern awards from 01 July 2021, with the exception of a handful (22 awards) to be increased in September and November. For the full list of when your applicable award will increase, see this link:

Each year the Fair Work Commission increases minimum pay rates and usually increases other monetary entitlements within the Modern Awards, usually around 01 July each year. This means for all employees, regardless if you pay a salary, all-inclusive hourly rate or the award rate, you will need to redo your calculations and apply any increases accordingly by 05 July 2021. The full penalties and fines for underpayment of wages will occur after this timeframe.

All employers’ responsibility is to keep accurate records of any wage-related calculations, including the “better off overall” test to demonstrate and, if required, prove that the employee is being paid correctly in line with the applicable modern award.

Note: this does not only affect employees underneath the modern award framework. Most enterprise agreements also require increases to be in line with the applicable Fair Work Commission increases.

With these changes, it is a good time to check and update your employment documentation with staff, especially if this hasn’t happened recently.

For assistance or questions when considering the impacts of the base rise on other entitlements which may impact your business or to look at updating your employment documents to reflect these changes, please call the team at Business 360 on 1300 287 360.



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