Australia’s minimum wage increase for hospitality, aviation and tourism workers from October 1
Millions of Australians will get a pay rise this week – here’s how much extra money you’ll see in your bank account
- The increase in the minimum wage should affect the remaining sectors
- Most industries implemented pay rise on July 1 after Fair Work Commission ruling
- But the aviation, hospitality and tourism industries were delayed until October
Australians are expected to see an increase in their bank balances this week as the rise in the minimum wage trickles down to the last group of workers.
The Fair Work Commission raised the minimum wage by $40 a week in June, with increases to most industry awards beginning July 1.
But the pay rise was delayed in 10 awards in the aviation, tourism and hospitality sectors which were badly hit by Covid and started from October 1 instead.
With typical paychecks hitting accounts by the 15th, this week will be the first in which all of Australia’s 2.3million minimum wage – around a third of the workforce work – will have a higher salary.
Australians on minimum wage in the hospitality industry will see their pay rise from next week
The October 1 hike impacts the hospitality industry award for cafe staff and baristas, the chartered club award for pub and kitchen staff and the restaurant industry award for waiting and kitchen staff.
The aviation industry sees an increase in the minimum wage for the Aircraft Cabin Crew Award, Air Pilots Award, Ground Staff Award and Airport Employees Award.
The tourism industry gets an increase in the price of alpine resorts which covers ski area workers, chalet hotel workers, ski lift operators, cleaners and childcare workers.
And the marine tourism and charter vessel award which covers dive instructors, boat crews, excursion support staff and boat reception workers.
Airline cabin crew will also see their minimum wage increase from this week
The 5.2% increase, which raises the minimum wage from $20.33 to $21.38 an hour, or $40 a week, was the biggest increase in more than 10 years.
Some people on newer scholarships and earning more than $869 a week will get a slightly lower increase of 4.6%.
Fair Work Commission chairman Ian Ross said in June that rising inflation was having the biggest impact on Australia’s lowest wages and that they needed support.
“Inflation erodes the real value of workers’ wages and lowers their standard of living,” Ross said.
“The lowest earners are particularly vulnerable in an environment of rising inflation.”
Airport ground staff will also see an increase in their reward rate after many have been cut since travel disruptions from 2020
Prime Minister Anthony Albanese said he “absolutely welcomes” the increase.
“It justifies our position that we took by making a different submission to the FWC that said we didn’t want people on minimum wage to back down,” he said.
Australia’s inflation rate in the June quarter of this year hit 6.8%, the highest since 1990, according to the statistics office.
Since May, the Reserve Bank of Australia has aggressively raised interest rates from historic lows to 2.35% in an effort to combat surging inflation.
1 OCTOBER MINIMUM WAGE INCREASE
The following industry awards are included:
Air Pilot Awards [MA000046]
Aircraft Cabin Crew Awards [MA000047]
Flight Operations – Ground Staff Awards [MA000048]
Airport Employee Awards [MA000049]
Airservices Australia Corporate Award 2016 [MA000141]
Hospitality Industry Awards (General) [MA000009]
Reward of registered and licensed clubs [MA000058
Restaurant Industry Award [MA000119]
Alpine resort prices [MA000092]
Marine Tourism and Charter Ship Awards [MA000093]
Source: Fair Work Commission.