Posted June 17, 2021
Following the Annual Wage Review 2021, the Fair Work Commission (FWC) has announced a 2.5% increase to the national minimum wage. This will apply to all award wages, with the award increase happening in 3 different stages.
The Hair and Beauty Award falls into the third stage, with the increase occurring from the first pay period after 1 November 2021.
HABA will distribute an updated wages table that sets out the new wage rates and allowances to members after the FWC has published the final determinations amending the award rates.
The FWC deemed there are “exceptional circumstances” justifying a delay to the change for certain industries hit hardest by the COVID-19 pandemic.
Fair Work Commission president Justice Iain Ross said this year’s economic circumstances were very different to those at the time of last year’s 1.75 per cent minimum wage increase, announced at the height of the pandemic recession.
Does the wage increase apply to award / agreement free juniors, trainees and apprentices?
Juniors, apprentices and trainees are generally covered under the award and therefore the rates of pay will increase at the same time as the adult rates.
What about award/agreement free employees?
Most employees in the hair and beauty industry are covered by the award. A National Minimum Wage Order applies to adult employees who are not covered by an award or enterprise agreement. The National Minimum Wage Order includes:
- A National Minimum Wage of $772.60 per week or $20.33 per hour; and
- A casual loading of 25%.
Adult employees who are award / agreement free must not be paid less than the National Minimum Wage.
What about non-national system employers in Western Australia?
At the time of writing, the Western Australian Industrial Relations Commission (WAIRC) has not yet handed down a state wage decision for employers that are not national system employers under the Fair Work Act 2009.
HABA will keep members informed of any decision of the WAIRC to increase the State Minimum Wage once this is known.
Is there any change to the Superannuation Guarantee?
The Superannuation Guarantee will increase to 10% effective from 1 July 2021.
HABA will continue to be your partner in pushing for changes to benefit salon owners at all levels of Government and in keeping you informed as these changes occur. That’s why it pays to be a HABA member.
Don’t forget with the end of the financial year just around the corner that your HABA membership is completely tax deductable!
Do you require further advice?
For information or assistance relating to the application of the Fair Work Commission’s decision, please contact the Hair and Beauty Australia Workplace Advice Line on (02) 9221 9911, which is open from 8.30am to 5.30pm AEST
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