top of page

Pay rate increases coming to the Hospitality industry award as handed down by fair work

Updated: Sep 6

Earlier today, the Fair Work Commission handed down its decision regarding the Annual Wage Review 2021/22.

Download PDF • 358KB

The decision had two increases to the National Minimum Wage and Modern Award Minimum Wages. Hospitality employers should pay close attention to what employees within their businesses are affected. If you have award interpretation software such as these changes will be automatically updated by the software.

hospitality worker cutting up vegetables

The increases that make up the Review

The main information to come out of this coming two parts:

The Annual Wage Review 2021-22 increase to the National Minimum Wage is 5.2%, increasing the minimum the National Minimum Wage to $812.60 from $772.60 per week.

The Annual Wage Review 2021-22 increase to the Modern Award Minimum Wage is 4.6%, subject to a minimum $40 per week increase for all employees. This increase is broken down into two components:

  • A 4.6% increase to minimum Award Wage Rates of $869.60 or higher, or

  • A flat $40.00 per week increased to minimum Award Wage Rates below $869.60 (the old rate $772.60 +$40.00= $812.60)

When does all of this happen?

Not straight away for Hospitality. These will take effect in the Hospitality Industry (General) Award 2020 and the Restaurant Industry Award 2020 from 1 October 2022.

What other increases can we expect to our bottom line?

Coupled with this decision are the impending Superannuation changes that with an increase from 10% to 10.5% from July 2022.

What can we do to try to make up for these costs?

As the saying goes when the going gets tough the tough get going. There is no magical fix to these increases except to offer an even better experience to your customers. You will really need to draw on your inner entrepreneur to craft a new cocktail, exquisite dish or whatever to take up the slack.

You could do an internal review of systems that need to be improved. You could get rid of the social media firm and do it in-house.

Regardless, with all of these changes rapidly taking effect, there is no better time to look at digitising your business, the efficiencies will save you money and may even lead to a more streamlined roster. Whilst you are doing all of this you could outsource your payroll to a dedicated payroll specialist. If you want to talk to someone who can help you out please get in contact

88 views0 comments
bottom of page