It may feel like everything is happening all at once. However, these increases have been in the pipeline for a while.

The target for superannuation is to increase to 12% of wages in 2025. Since July 2021, a half percent increase will occur each year until the target is met.

Minimum wage increases have been regular talking points by political parties. The cost of living has steadily increased, making the minimum wage inadequate for the current economic environment.

The most important information relating to the changes are the “What” and the “When”.

Employees covered by an award wage may be affected by the increase.

The increases mentioned are based on a 38-hour week for a full time employee.

Award wages above $869.60 per week will receive an increase of 4.6%

Award wages below $869.60 per week will receive an increase of $40 (bringing the award up to the new national minimum wage).

Example:

A full-time employee working under an award (being paid the award wage) has a weekly wage before the 1st July 2022 of $772.60

Their weekly minimum wage from the 1st July 2022 will increase by $40 due to the earnings being below $869.60.

Example 2:

A full-time employee working under an award (being paid the award wage) has a weekly wage before the 1st July 2022 of $889.40.

Their weekly minimum wage from the 1st July 2022 will increase by 4.6% due to the earnings being above $869.60.

Most awards will have the increase applied from the first pay period on or after 1 July 2022.

There are several awards that will have the increases apply from 1 October 2022. These relate to the aviation, hospitality and tourism industries.

From the 1 July 2022 the changes to superannuation will include:

The aim of the increase is to provide better retirement outcomes for Australians upon retirement and to reduce future strain on the age pension systems.