The Fair Work Commission handed down the annual wage increase today at 3.30pm via an online hearing. The annual wage increase applying to all Awards will be 2.5%. The decision will come into effect from the first full pay period on or from 1 July 2021.
The annual wage increase last year was staggered across three tiers with industries separated by the level of impact COVID-19 had on the industry. The Construction Industry was in the second tier with the annual increase effective from 1 November 2020. The Fair Work Commission Annual Wage Increase Panel commissioned research from Melbourne University labour economist Jeff Borland that shows only three broad sectors are "lagging" in their recovery (employment down 5% to 10% compared to pre-pandemic levels), five are "almost" recovered (1% to 2% down) and the rest are "fully recovered". The Construction Industry as a whole was listed in the “almost recovered” category. The staggered implementation will only exist for a small number of Awards, including the Tourism Award and the Aviation Awards, it will not apply to any Construction related Awards or the Clerical Award.
- CCF NSW will have the wage summaries available for Members late next week.
- Members must now commence updating the rates of pay for employees engaged under an Award, reviewing any IFA’s that are in place and ensure that the rates in an Enterprise Agreement remain better off.
If you have any questions, please contact the Compliance Support Unit on 9009 4000.