The Fair Work Commission (the Commission) reviews the National Minimum Wage and minimum award pay rates each year.
Find out more about the Annual Wage Review (AWR).
Every year, the Commission reviews the National Minimum Wage and minimum pay rates in awards to decide if they should be increased. This is the Annual Wage Review.
The AWR usually happens between March and June. Any changes usually come into effect on 1 July.
For more information about the review, visit the Commission’s website at Annual wage reviews.
As part of the AWR, the Commission can change minimum wages, including:
This can also affect minimum wages in agreements.
Other changes can happen alongside the AWR, including changes to the:
The National Minimum Wage applies to employees who aren't covered by an award or enterprise agreement.
This increase typically applies to employees from their first full pay period starting on or after 1 July each year.
Most trainees on a registered traineeship get their pay and some conditions from Schedule E in the Miscellaneous Award.
Since award wages are impacted by the AWR, trainee wages can be updated at the same time.
The minimum wage changes also apply to awards that refer to Schedule E of the Miscellaneous Award for their trainee pay.
Calculate trainee wages using our Pay and Conditions Tool.
Find out more information about Trainee pay or read our Library article Trainee rates in the National Training Wage schedule.
This increase generally applies to employees from their first full pay period starting on or after 1 July each year.
The minimum wage increase may apply to employees covered by an enterprise agreement.
This happens because the base pay rate in an agreement can’t be less than the base pay rate in the relevant award.
For more information, read our Library article Annual Wage Reviews and registered agreements.
Check your agreement by searching for it on the Commission’s website: Find an agreement.
The high income threshold is the maximum yearly earnings that an employee can get while still being covered by an award.
When an employee is guaranteed in writing to earn an annual amount that is more than the high income threshold:
Find more about the high income threshold at Award and agreement free wages and conditions.
The compensation cap is the highest amount the Commission can order an employer to pay in an unfair dismissal case. It is set at half the high income threshold, so the compensation cap also increases on 1 July each year.
Find out more on the Commission’s website at Compensation cap.
The contractor high income threshold limits who's eligible to apply to the Commission for an unfair deactivation, unfair termination or unfair contract term remedy. It gets adjusted annually on 1 July.
For more information on the threshold and contractor laws, visit Opting out of the whole of relationship test.
Source reference for page: Fair Work Act 2009 sections 282–295
The Fair Work Ombudsman acknowledges the Traditional Custodians of Country throughout Australia and their continuing connection to land, waters, skies and communities. We pay our respects to them, their Cultures, and Elders past and present.
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