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Minimum Wage increase for FY22/23 – summary

The Fair Work Commission minimum wage panel decision of 15 June 2022 announced a 5.2% increase to the National Minimum Wage.

The decision lifts the national minimum wage from $20.33 per hour ($772.60 per week) to $21.38 per hour ($812.60 per week) from 1 July 2022.

While Anthony Albanese endorsed a 5.1% increase to the NMW, data from the last decade showed that no single increase had been higher than 3.5%.

Modern Award Minimum Wage Increase

Modern award minimum wages will be increased by 4.6% subject to a minimum increase for adult award classifications of $40 per week.

Award wage rates currently above $869.60 per week will increase by 4.6%.

Award wage rates currently below $869.60 per week will increase by $40 per week.

The increase to the modern award minimum wages will also have a ripple effect on other types of modern award entitlements such as:

  • Junior, apprentice and trainee rates
  • Casual rates
  • Penalty rates
  • Overtime rates
  • Allowances that are underpinned by a ‘standard rate’
  • Annual leave loading

Increase to the Minimum Superannuation Guarantee Rate

The significant minimum wage increase is in addition to changes to superannuation entitlements effective from 1 July 2022.

From 1 July 2022:

  1. The minimum superannuation guarantee rate will increase from 10.0% to 10.5%.
  1. The $450 minimum monthly income threshold for entitlement to superannuation will be removed.

Employees under 18 years of age will still need to work more than 30 hours per week to be entitled to the minimum superannuation guarantee.

Employers are going to see an increase in their labour and supplier costs which will then need to be passed onto the market.

An increase to payroll expense for businesses could have other flow-on effects in terms of payroll tax and business insurance premiums (e.g. Workcover insurance).

Wage reviews

Businesses should start budgeting for the upcoming 1 July changes to:

  • The national minimum wage;
  • The modern award minimum wage; and
  • The minimum superannuation guarantee rate.

Employers should be reviewing the wages of any salaried employees to ensure that their salary continues to meet or exceed the amount the employee would have received under the relevant underpinning modern award or registered workplace agreement.

Registered agreement holders

An increase to modern award minimum rates also affects businesses that are covered by registered agreements (e.g. a certified agreement, collective agreement or enterprise agreement) as the Fair Work Act 2009 makes it unlawful for any business to pay less than award base rates of pay to those employees who are covered by an award.

Any business that is operating under a registered agreement should review their minimum wage rate obligations following the National Minimum Wage Decision of the Fair Work Commission.


HRIA members are encouraged to contact MST Lawyers through the HRNet hotline support service if they have any questions in relation to the wage increase or superannuation changes taking effect from 1 July 2022.

“HRNet” is an initiative of the HRIA which gives HRIA members free access to a dedicated workplace relations support service operated by MST Lawyers.

HRIA members can speak to a specialised employment lawyer at MST Lawyers by simply ringing the HRNet hotline support service on 1800 474 247.

HRIA members also have access to helpful employment-related factsheets and templates via the HRNet website.

MST Lawyers is a law firm based in the South-Eastern suburbs of Melbourne with dedicated teams specialising in the following areas of law:

  • Workplace relations
  • Wills and estates
  • Property and conveyancing
  • Litigation and dispute resolution
  • Corporate
  • Franchising
  • Family

You can find out more about MST Lawyers on their website at https://www.mst.com.au/.

HRIA members are welcome to contact MST Lawyers through the HRNet hotline support service in relation to any non-employment related enquiries and they will be referred to the appropriate team for a free initial consultation.

To find out more about your specific employer obligations for the next financial year, please contact the MST Lawyers’ Employment Law team by email on workplace@mst.com.au or by phone on +61 3 8540 0200


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