INSIGHT

1 July 2021 increases (wages and super)

By Courtney Logue, Andrew Wydmanski
Employment & Safety

Changes to minimum wage, high income threshold and superannuation 3 min read

The minimum wage, high income threshold and superannuation guarantee rate are all set to increase on 1 July 2021.

Minimum wage increase

From 1 July 2021, the general federal minimum wage (for employees not covered by an award) will be increased to $772.60 per week ($20.33 per hour).

Award minimum wage increase

The Fair Work Commission has ordered increases to minimum wages for employees covered by awards as follows:

  • Effective 1 July 2021: The pay rates in all awards, except those set out below, will be increased by 2.5%.
  • Effective 1 September 2021: The pay rates in the General Retail Industry Award 2020 will be increased by 2.5%.
  • Effective 1 November 2021: The pay rates in the awards set out below will be increased by 2.5%:
    • Air Pilots Award 2020
    • Aircraft Cabin Crew Award 2020
    • Airline Operations – Ground Staff Award 2020
    • Airport Employees Award 2020
    • Airservices Australia Enterprise Award 2016
    • Alpine Resorts Award 2020
    • Amusement, Events and Recreation Award 2020
    • Dry Cleaning and Laundry Industry Award 2020
    • Fitness Industry Award 2020
    • Hair and Beauty Industry Award 2010
    • Hospitality Industry (General) Award 2020
    • Live Performance Award 2020
    • Mannequins and Models Award 2020
    • Marine Tourism and Charter Vessels Award 2020
    • Nursery Award 2020
    • Racing Clubs Events Award 2020
    • Racing Industry Ground Maintenance Award 2020
    • Registered and Licensed Clubs Award 2020
    • Restaurant Industry Award 2020
    • Sporting Organisations Award 2020
    • Travelling Shows Award 2020
    • Wine Industry Award 2020.

High income threshold increase

On 1 July 2021, the high income threshold will increase from $153,600 to $158,500. The compensation cap for unfair dismissal claims will also be increased from $76,800 to $79,250.

Superannuation increase

The superannuation guarantee contribution rate will increase from 9.5% to 10% on 1 July 2021.