This article contains the below information:
What is the Wage Increase for 2022?
On Wednesday 15 June 2022 the Fair Work Commission (FWC) handed down the Annual Wage Review 2021–22 decision.
The FWC has announced a 4.6% increase to award wages. This increase is subject to a threshold that requires the increase to the minimum adult wage to equate to $40 per week. This $40 per week increase is based on a 38-hour week for an adult full-time employee. The FWC stated in their decision that "modern award minimum wage rates above $869.60 per week will receive a 4.6 per cent adjustment, wage rates below $869.60 per week will be adjusted by $40 per week."
Please see the below table outlining the upcoming wage increases:
Current Wage Rate:
Increase for 2022/23 Financial Year:
Above $869.60 per week
Below $869.60 per week
$40 Increase per week
The increase in wages under the Awards will happen in two stages this year. The first stage will occur on 1 July 2022 and the second stage will occur on 1 October 2022.
The first stage of the wage increases will take effect from the first full pay period starting on or after 1 July 2022.
The second stage of the wage increases will take effect from the first full pay period starting on or after 1 October 2022.
Which Tanda Templates are Affected by the 2022 Wage Increases?
Wage Increases Round 1
The below Tanda Managed Award Templates will have wage increases that will be effective from the first full pay period on or after 1 July 2022:
MA000002: Clerks - Private Sector Award
MA000003: Fast Food Industry Award
MA000004: General Retail Industry Award
MA000005: Hair and Beauty Industry Award
MA000010: Manufacturing and Associated Industries and Occupations Award
MA000012: Pharmacy Industry Award
MA000018: Aged Care Industry Award
MA000027: Health Professional and Support Services
MA000027: Health Professionals and Support Services – Imaging: Five and a Half Day Practice
MA000027: Health Professionals and Support Services – Imaging: Seven Day Practice
MA000027: Health Professionals and Support Services – Private Medical/Dental/Pathology Practice
MA000033: Nursery Award
MA000034: Nurses Award
MA000038: Road Transport and Distribution Award
MA000065: Professional Employees Award
MA000073: Food, Beverage and Tobacco Manufacturing Award
MA000080: Amusement, Events and Recreation Award
MA000083: Commercial Sales Award
MA000084: Storage Services and Wholesale Award
MA000091: Broadcasting, Recorded Entertainment and Cinemas Award (Cinemas Stream)
MA000094: Fitness Industry Award
MA000096: Dry Cleaning and Laundry Award (Dry Cleaning Stream)
MA000096: Dry Cleaning and Laundry Award (Laundry Stream)
MA000100: SCHADS (Crisis Accommodation)
MA000100: SCHADS (Family Day Care)
MA000100: SCHADS (Home Care)
MA000100: SCHADS (Social and Community Service)
MA000104: Miscellaneous Award
MA000116: Legal Services Award
MA000118: Animal Care and Veterinary Services Award
MA000120: Children’s Services Award
Wage Increases Round 2
The below Tanda Managed Award Templates will have base rate increases that will be effective from the first full pay period after 1 October 2022:
MA000009: Hospitality Industry (General) Award
MA000058: Registered and Licensed Clubs (General Template)
MA000058: Registered and Licensed Clubs (Maintenance Template)
MA000119: Restaurant Industry Award
How Wage Increases Work in Tanda
For employees covered under a Tanda Award Template, Tanda automatically applies minimum wage updates.
A recent improvement to our Award Templates means no action is required in Tanda, the update will occur automatically at the beginning of your first full pay period after the new rates apply.
Depending on the payroll software you use, you may need to update base hourly rates manually in your payroll software.
Updating Rates for Xero and MYOB AccountRight Live
For Xero and MYOB AccountRight Live, rates update automatically through Tanda's integration. The rates will be updated upon export of the first finalised pay period after the new rates have come into effect.
For 2022, this will either be the first full pay period on or after 1 July 2022 or 1 October 2022.
To confirm what wage increase round is applicable to you see the Which Tanda Templates are Affected by the 2022 Wage Increases? section of this article.
No further action is required, however you should confirm that the updates have occurred as expected prior to finalising your first pay run after the change.
Updating Rates for All Other Payroll Systems
At the beginning of the first full pay period, follow the below steps to match the rates in your payroll software to the rates in Tanda:
Generate a report of the new base hourly rates in Tanda. Navigate to Compliance > Award Template > Manage.
In the manage award template page for each award you will find a payroll integration report:
TIP: Depending on your payroll software, the button might be named something different, but it will always be located in the same place as the above image.
Update the base hourly rates in your payroll software to match the new base hourly rates contained in the Tanda payroll configuration report.
When Do updates Apply From?
Tanda will automatically update Managed Template Award rates on the start date of your first full pay period after the operational date.
For further information on effective dates, see the Get set for a minimum wage increase article from the Fair Work Ombudsman.
How to Check the New Rates Have Applied Correctly
Navigate to Compliance > Award Template > Manage. The date 'Last Edited...' will show the date the template has most recently been updated.
You can also check the rate in the payroll export summary of a timesheet that begins in the first full pay period following the effective date.
FAQ's and Troubleshooting
How Does Tanda Know What Rates Are Correct?
As the minimum wage announcement from the Fair Work Commission is generally a few weeks ahead of the date the increases come into effect and the Fair Work Ombudsman's updated pay guides, Tanda firstly performs our own calculations to ensure updated rates are available to all users in time for their operational date.
Once new Pay Guides are issued by the Fair Work Ombudsman, our team perform a final validation against the Fair Work Ombudsman Pay Guides. This is to confirm that our methods of rounding match the rounding methods of the Ombudsman.
It's not uncommon to find disagreement between industry body pay guides, and those published by the Ombudsman (usually of 1 cent).
Tanda has called upon the Fair Work Commission and the Fair Work Ombudsman to clarify a rounding standard for these calculations to remove any ambiguity.
Why does Tanda apply the update from the start of the first full pay period after the operational date?
Section 287 of Fair Work Act 2009 details when annual wage review determinations take effect for a particular employee. The minimum wage order takes effect in relation to a particular employee from the start of their first full pay period after the operation date of the order.
The relevant section of the act states: 'The order takes effect in relation to a particular employee from the start of the employee’s first full pay period that starts on or after 1 July in the year of operation. However, an adjustment referred to in subsection (4) takes effect in relation to a particular employee from the start of the employee’s first full pay period that starts on or after the day specified as referred to in that subsection.' (Source: Fair Work Act 2009 Part 2-6, Section 287 (5))
Where to Find Extra Help
If you have any questions on rate changes, reach out via the chat window in your account or to email@example.com.