Annual Wage Review 2022-23 — $21.38/hr NMW

Fair Work Commission decision [2022] FWCFB 3500 (Annual Wage Review 2021-22), handed down June 2022, effective 1 July 2022 for most awards; 1 October 2022 for hospitality, tourism and aviation awards.

What was the 2022-23 Annual Wage Review decision?

The Fair Work Commission's 2022-23 Annual Wage Review decision, handed down June 2022 ([2022] FWCFB 3500 (Annual Wage Review 2021-22)), lifted the National Minimum Wage by 5.2% to $21.38/hr ($812.60 for a 38-hour week) and modern award minimum rates by 4.6%, effective 1 July 2022 for most awards; 1 October 2022 for hospitality, tourism and aviation awards.

5.2% increase to NMW; 4.6% to modern award rates. NMW set at $21.38/hr. The first significant above-inflation rise in many years, reflecting the new inflation environment.

The Panel's reasoning

• Cost-of-living pressure was rising sharply in early 2022. The Panel acted to protect the real wages of the lowest-paid.
• Hospitality, tourism and aviation awards were given a 3-month deferral to 1 October 2022 because those industries were still recovering from COVID-19 disruption.
• The 5.2% NMW rise was the largest in over a decade at the time.
• Modern award rates rose 4.6% across all classifications, less than the NMW rise to maintain relativities.

Economic context

Annual CPI was 5.1% to March 2022, rising rapidly through energy and food prices. The Panel weighs CPI, labour-market conditions, productivity, relative living standards of award-reliant employees, and submissions from the Federal Government, ACTU, ACCI, ABI and Australian Industry Group when reaching its decision.

Who decided this?

The expert panel of the Fair Work Commission, chaired by President Justice Iain Ross AO, with Vice President Hatcher, Deputy President Asbury, Commissioner Hampton, expert panel. The expert panel meets between March and May each year, hears submissions, and publishes its determination in early June.

What this meant for your pay

If you were paid the National Minimum Wage in 2022-23, your gross weekly pay for a 38-hour week was $812.60 (up from the previous $20.33/hr rate). If you were paid a modern award rate, your minimum hourly rate rose by 4.6% from the previous year.

If you were paid above the award minimum, your employer was not required to pass on the wage review increase — though many do, particularly where the award rate has now caught up to your above-award rate.

To calculate the exact impact on your pay, use the Annual Wage Review impact calculator or ask FairWork Mate AI about your specific award and classification.

Source

Fair Work Commission Annual Wage Review 2022-23 decision, [2022] FWCFB 3500 (Annual Wage Review 2021-22). Full decision available at fwc.gov.au/annual-wage-review.