​Annual wage increase 2022

Public news

As advised previously, the Fair Work Commission handed down its Annual Wage Review decision on 15 June 2022 increasing the National Minimum Wage by 5.2% (or $40 per week) and the minimum rates of pay in the modern awards by 4.6% (subject to a minimum increase for adult award classifications of $40 per week).

This means an employee earning above $869.60 per week will receive a 4.6% increase, whilst an employee earning below $869.60 per week will receive an increase of $40.

The increase is operative from the start of the first FULL pay period commencing on or after 1 July 2022.

The full-time adult minimum wage at Group Wage Level (R1) in the Vehicle Repair, Services and Retail Award 2020 (“the Award”) increases to $812.60 per week ($21.38 per hour), an increase of $40.00 per week. The full-time tradesperson’s rate at Group Wage Level (R6) in the Award increases to $940.90 per week ($24.76 per hour), an increase of $41.40 per week.

Junior rates, apprenticeship and traineeship rates have also been adjusted, as appropriate, under previously established methods. Under the Award, junior apprentice and first year adult apprentice rates are based on a percentage of the adult Level (R6) rate depending on the year of the apprentice. For example, the fourth year (Stage 4) rate is 88% of the Level 6 (Tradesperson) rate.

Increases in wage-related allowances in awards are also automatically adjusted as a result of the increase. For example, the first aid allowance has gone from $17.99 per week to $18.82 per week.

Members are now able to access the updated wage schedules reflecting the new wage rates and allowances on the MTA website members portal.

As in previous years, employers paying above award wage rates will have the ability to absorb the wage increase, if the rates being paid are sufficiently above the award rates.

To ensure compliance, we encourage members to regularly review all their current wage rates, including applicable overtime, allowances and loading etc. The MTA Workplace Relations team can assist by carrying out an audit of these systems. Please call (08) 8291 2000 or email wr@mtasant.com.au for more information on this service.