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  • Sally Davies

1 July 2022 Changes to Employee Entitlements

1 July always sees a flurry of changes in the employment law sector, and this year is no different. A summary of the most significant changes are as follows: -


A. Increase to National Minimum Wage


For employees who are not covered by an award or an agreement, from 1 July 2022, the new National Minimum Wage has increased to $21.38 per hour (up from $20.33), or $812.60 per week (up from $772.60).


B. Increase to Award Minimum Wage


For employees that are covered by an award, there will also be a change to the minimum wage in those awards, however those changes will occur in 2 groups. For awards falling into group 1, the increase will occur on and from 1 July 2022, and for awards falling into group 2, the increase will occur on and from 1 October 2022.


To see what Awards fall within each group, please click on the following link: https://www.fairwork.gov.au/newsroom/news/get-set-for-a-minimum-wage-increase#1-October-2022-minimum-wage-increase


C. Increase to Superannuation Guarantee


From 1 July 2022, the superannuation guarantee rate has increased to 10.5% (from 10%).


This new rate is to be applied to calculate any superannuation payments on or after 1 July 2022, even in circumstances where some of the pay period is from pre-1 July 2022.


D. Removal of Eligibility Threshold for Superannuation


The $450 per month threshold to be eligible for superannuation has been removed. This means that all employees with the exception of those under 18 who work less than 30 hours per week, must now receive superannuation payments at the new Superannuation Guarantee rate.


E. Changes to Social, Community, Home care and Disability Services Award (SCHAD)


Effective from 1 July 2022, there are key changes to the SCHAD Award including in relation to minimum wages, broken shifts, and allowances.


For more information, see here: https://www.fairwork.gov.au/newsroom/news/1-july-2022-changes-social-community-home-care-and-disability-services-award


F. Increase to High Income Threshold


From 1 July 2022, the high-income threshold increased to $162,000 per annum. This means that employees earning above this threshold are no longer covered by the applicable award for their position, and cannot file an unfair dismissal application. This change also means that the maximum compensation that an employee can receive in an unfair dismissal application is $81,000 (ie: 26 weeks).


G. End of Unpaid Pandemic Leave


From 30 June 2022 onwards, the unpaid pandemic leave provisions that were contained in certain awards, no longer apply. Any arrangements regarding pandemic leave will now need to be co-ordinated directly between employers and employees.


H. Fair Work Information Statement


An updated information statement has been released by Fair Work. This statement needs to be provided to all new employees from 1 July 2022 onwards. The sheet is available from the Fair Work website: https://www.fairwork.gov.au/sites/default/files/migration/724/Fair-Work-Information-Statement.pdf


If you need assistance in relation to employment law matters, please give Jenkins Legal Services a call on 02 4929 2000 or email office@jenkinslegal.com.au.


This article is not legal advice and the views and comments are of a general nature only. This article is not to be relied upon in substitution for detailed legal advice.