2021 National Minimum Wage Increase in Australia

Roughly 2.2 million employees across Australia are set to see a pay rise following the release of the Fair Work Commission’s (FWC) Annual Wage Review.

Last year, the FWC announced a modest increase of 1.75%, with this increase implemented across awards in three tranches. This unique approach took account of industries hit by the COVID-19 pandemic, delaying the rise to 1 February 2021 for those industries hardest hit by the pandemic, including the aviation, retail and tourism industries.

As a result of the “markedly better” economic climate this year, the FWC has announced a 2.5% raise. Employees who are paid the National Minimum Wage (NMW) will see an increase of AU$0.49 per hour, to AU$20.33 per hour. This represents an AU$18.80 per week increase, to a total weekly wage of AU$772.60 per week. This is, of course, in addition and separate to the superannuation rate increasing from 9.5% to 10% from 1 July 2021 for all employees.