Happy New HR Year!

1 July 2021

Every year the 1st of July brings around workplace changes, a minimum wage increase and a couple more changes for good measure. Here’s a quick check-list of the changes to ensure your business doesn’t miss out;

Minimum wage increases

From the first full pay period after 1 July 2021:

  • Minimum rates of pay for employees who are covered by modern awards will increase by 2.5%. To make the increases more manageable for employers who are in industries which are highly affected by COVID, some modern awards increases will be delayed until September and November 2021.
  • The national minimum wage for an award-free adult employee will increase to $772.60 per week, or $20.33 per hour.
  • The decision also impacts allowance and expense amounts referred to in modern awards such as travel allowances.

Enterprise agreements

Employers with an enterprise agreement in place must ensure that the base rate of pay in the agreement does not result in any employee being paid less than the relevant modern award pay rate.

Or if no award applies, the national minimum wage.


Casual loadings

The casual loading in modern awards will remain at 25%. If you haven’t already actioned this in your employment contracts and payslips, we recommend that employers separately identify the base hourly rate and the casual loading amounts.


Superannuation guarantee contributions

The superannuation guarantee increases from 9.5% to 10% effective from 1st July 2021.


High-income threshold and compensation limit changes

  • The high-income threshold moves from $153,600 to $158,500. Employees paid over this amount cannot access the unfair dismissal jurisdiction of the Fair Work Commission.
  • In line with these increases, the compensation limit under the unfair dismissal laws also increases from $76,800 to $79,250. The compensation limit is the maximum compensation available to an employee successful in an unfair dismissal claim.

We are alway happy to help and if you need assistance, please reach out Impact HR on 1300 474 672 or contact us here.

More News? Sign Up for our e-Newsletter?

Join us

Be part of the Impact HR Insights Community

Want to know what's happening in the world of HR? Join our Insights Community and get the latest HR news and best practice updates from the Impact HR team.

You have Successfully Subscribed!