Fairwork Commission Announces 2.5% Minimum Wage Increase

July 13, 2021

The Fair Wage Commission announced earlier this month that there would be an annual national minimum wage increase of 2.5%, raising the hourly rate to $20.33 from $19.84. That is $772.60 per full-time week up from $753.80. Most states (with Victoria the exception) and businesses and associations were against the move however, Unions and employees consider this good news.

APAN joined several associations in opposing the move with the Fair Work Commission. This increase has also impacted retailers and as the Australian Retail Association’s President Paul Zahra stated that while economic recovering remains uneven with many businesses, particularly small businesses in CBD locations are continuing to struggle for survival.

APAN confirmed that many salons and clinics have been detrimentally impacted by the current lockdowns, particularly in Victoria, but now also in NSW. While Qld, WA, S.A, NT and Tas have experienced fewer lockdown disruptions, the current restrictions and the economic unpredictability is creating a great deal of uncertainty with several businesses reporting they have been compelled to cut back on their staff. The potential wage increase has created an uproar for many devastating businesses.

We are constantly advising business owners to carefully review their overheads and budget accordingly for the upcoming increase. However, businesses are encouraged to also identify growth opportunities as they do exist as constant cost-cutting, if not carefully considered, can be detrimental in the long-term as it can contribute to lowering quality services.

As a result of negotiations with the Fair Work Commission, they have decided to postpone the 2.5% wage increase for the hair and beauty industry until at least 1 November 2021. Therefore, the minimum wage award for our industry will remain the same until 1 November, at which point salon and clinic businesses will need to be prepared for an increase in their payroll. For further information please visit; https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/annual-wage-review-2021