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Fair Work Commission Annual Wage Review decision

Media Release

The Morrison Government notes the Fair Work Commission’s (FWC) decision to award an increase of 2.5 per cent to the national minimum wage and award wages.

The decision will take effect on 1 July 2021 and the national minimum wage rate will increase from $19.84 to $20.33 per hour. The Government notes that some award increases will come into effect in the following months, such as general retail on 1 September, and aviation, tourism and accommodation and food sectors on 1 November. This takes into account those industries with higher exposure to the effects of the pandemic.

The decision represents a real wage increase for up to 2.2 million Australian workers and reflects the strong economic management of the Morrison Government, putting the right conditions in place to drive upward pressure on wages for workers.

As the FWC noted, "the current performance of the economy has exceeded expectations and that the economic recovery was well underway. The Australian economy has recovered to a greater extent and more quickly than anticipated."

Australia’s minimum wage is already the highest in the world according to the OECD.

The labour market has shown a remarkable recovery since the onset of the pandemic, with more Australians in work than before February 2020.

Creating and growing more jobs for Australians has been an integral part of the Morrison Government plan for economic recovery. More Australians in work, drives upward pressure on wages.

The Government respects the independence of the Fair Work Commission Expert Panel which aims to balance the interests of workers, employers, the economy and jobs. The Government’s role in the Annual Wage Review is to provide the latest evidence on the economy, labour market, for the Fair Work Commission to consider in making its decision.