Increase in Australia’s minimum wage and what it means for visa holders
The Fair Work Commission has today ordered that the minimum wage will be lifted $1.05 an hour from its $20.33 base from July 1, an increase of 5.2 per cent, to $21.38 an hour.
Key Points
- Modern Award minimum rates will also increase by 4.6% subject to a minimum increase of $40 per week.
- Modern Award rates above $869.60 per week will increase by 4.6%. Modern Award rates below $869.60 per week will increase by $40 per week.
- Awards in the aviation, tourism and hospitality sectors will not have to incorporate the new wage rises until October 1 due to "exceptional circumstances.
- All other modern awards will have to include the increase from July 1
The Fair Work Commission said its decision would affect more than 2.7 million workers, as well other employees on enterprise agreements and other pay settings. The Fair Work Commission reviews Australia's minimum wage on a yearly basis. Last year it was increased by 2.5 per cent to meet the rising cost in living expenses.
Some business groups argued against a pay rise, suggesting supply chain and cost pressures made it unsustainable.
What does this mean for visa holders and their employers ?
We recommend that all salaries and awards for visa holders in Australia are reviewed before 1 July. Although a sponsored visa holder may have been approved with a certain salary, the visa holder must continue to be paid the relevant award wage where applicable.
Any questions please don’t hesitate to get in contact.
