Australia minimum wage increase for hospitality, aviation and tourism workers from October 1

Australians are set to see a boost in their bank balances this week as the minimum wage increase flows through to the final group of workers. 

The Fair Work Commission raised the minimum wage by $40 a week in June with the increase in most industry awards beginning from July 1. 

But the pay rise was delayed in 10 awards in the aviation, tourism and hospitality industries that were heavily affected by Covid and began from October 1 instead.

With typical pay cheques hitting accounts by the 15th of the month, this week will be the first in which the entire 2.3million Australians on the minimum wage – about a third of the workforce – will have a higher pay packet.

See also  Instagram begins testing age verification tools of video selfies and confirmation from other users

Australians on the minimum wage in the hospitality industry will see an increase in their pay from next week 

The October 1 rise impacts the Hospitality Industry Award for café workers and baristas, the Licensed Clubs Award for pub and kitchen staff, and the Restaurant Industry Award for wait and kitchen staff.

The aviation industry sees a rise in the minimum wage for the Aircraft Cabin Crew Award, Air Pilots Award, Ground Staff Award, and Airport Employees Award.

The tourism industry gets a rise in the Alpine Resorts Award which covers ski field workers, chalet hospitality workers, lift operators, cleaners, and childcare workers. 

And the Marine Tourism and Charter Vessels Award that covers dive instructors, boat crews, tour support staff, and boat hospitality workers. 

Airline cabin crews will also have their minimum wage increased from this week 

The 5.2 per cent hike, which lifts the minimum wage from $20.33 to $21.38 per hour, or $40 a week, was the biggest increase in more than 10 years.

Some people on newer awards earning more than $869 a week will get a slightly lower 4.6 per cent rise.

Fair Work Commission President Ian Ross said in June that rising inflation was impacting Australian on the lowest wages the most and they needed support. 

‘Inflation erodes the real value of workers wages and reduces their living standards,’ Mr Ross said.

‘The lowest paid are particularly vulnerable in the context of rising inflation.’

Airport ground staff will also see an increase in their award rate after many were downsized since travel disruptions from 2020

See also  BAFTA Awards 2023: The full winners list

Prime Minister Anthony Albanese said he ‘absolutely welcomed’ the increase. 

‘It justifies our position we took in making a different submission to the FWC that said we did not want people who are on the minimum wage to go backwards,’ he said.

Australia’s inflation rate in the June quarter this year reached 6.8 per cent, the highest since 1990, according the the bureau of statistics. 

Since May, the Reserve Bank of Australia has hiked interest rates aggressively from record low levels to 2.35 per cent in a bid to battle the inflation surge.