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Murray Thornhill, Managing Director in our Employment and Dispute Resolution teams share the news that the Fair Work Commission has announced that the minimum wage will increase by 2.5% to $772.60 per week (or $20.33 per hour) from 1 July 2021. The increases to rates under the federal Awards will be made in three stages, with the first (for most Awards) on 1 July 2021, the second on 1 September 2021 (for the General Retail Industry Award), and for a limited number of Awards is highly COVID-effected industries such as aviation and tourism, increases won’t kick in until 1 November 2021. The Western Australian Industrial Relations Commission will announce any increases to the State minimum wage shortly.

It is important that all employers take the opportunity to:

  • check which Awards (if any) apply to their employees;
  • work out into which classification each employee falls;
  • confirm that all employees’ hourly rates exceed the minimum wage (including any casual loading, penalties, and overtime rates);
  • update any employment contracts or individual flexibility arrangements.

Other than the delayed Awards, the new rates apply from the first pay cycle on or after 1 July 2021.

A failure to comply with the Fair Work Act 2009 (WA), including by underpaying an employee or otherwise breaching a modern Award, can result in penalties for both an employer and directors or other officers. From 1 July 2021, these penalties may also be increased.

This can also be a useful time to review employment contracts across your team, ensure your payroll software is suitable for your requirements, and update your employee records before the end of the financial year.

Our team is highly skilled and experienced in advising on all aspects of Employment and Commercial Litigation law. Contact us today if you need advice or representation in this area.


*This information serves as a general guide and does not constitute legal advice. It is based on our research and experience at the time of publication. Please consult our knowledgeable Legal Team for any specific inquiries or advice relevant to your circumstances, as the content may not have been updated subsequently.