The Fair Work Commission Annual Wage Review 2022

The increase to base rates of pay has not yet been announced by the Fair Work Commission. The change only applies to employees whose pay rates come from the national minimum wage, a modern award (of which there are more than 100) or in some cases a registered agreement. The Fair Work Ombudsman will update their pay tools with the new pay rates on 1 July 2022. Rates of pay can be viewed via the Award Pay Guides or by using the Fair Work PACT Calculator.

For award-based employees paid above award rates, the ‘absorption’ principle means that you do not have to increase above-award payments unless the new award minimum is higher than the employee’s current rate. If this occurs, you must pay at least the new minimum.

Employers who have registered agreements in place (including pre-Fair Work Act 2009 agreements) will need to ensure that the base rate of pay in the agreement is at least equal to the new award minimum. This requirement only applies to the base rate of pay and does not apply to allowances, penalty rates or loadings.

If your enterprise agreement has expired (that is, it has passed it expiry date which may include a pre- Fair Work agreements), it remains in force until it is replaced by a new agreement or the Fair Work Commission terminates the agreement.