How to Conduct a Staff Salary Review in 2022

  • attracting great people into the business
  • growing those high performers
  • reducing employee turnover
  • building a great workplace culture
  • retaining great people.

July Salary Assessments

  • Fair Work Commission wage decision (see below)
  • Inflation and the increasing cost of living
  • A highly competitive labour market.

Fair Work wage decision

The Fair Work decision is something that you should diarise to review every year.’

  • $40 per week, where the person is currently earning less than $869.60 per week
  • 4.6%, for the award rates where the wage is greater than $869.60 per week.

How does the Fair Work decision affect my business?

‘most business owners have no idea about their responsibilities in this area until they get into a bit of trouble’

  • administrative roles
  • technology positions
  • some sales positions

What if I pay salaries not wages?

Even if you pay a salary, the award still applies.‘

Wage theft warning

Check award rates


Careful review

Check market rates

Communicating with staff

  • we’ve done a check of everyone’s salaries
  • in most cases, we’re comfortable that they’re in line with or above the market
  • the Fair Work decision is designed for those on minimum wage, and we don’t pay minimum wage, we’re paying you in line with the market (which is higher)
  • we’ll continue to monitor the market and adjust as needed
  • we identified some staff who are being paid less than the market rate, and we’ll be contacting them directly
  • for all other staff, we’ll be implementing a X% pay increase across the board

Avoid email

Competitive labour market

The takeaway

  1. Check that award rate Make sure you understand who is covered by the award, even if you pay salaries
  2. Check the market rate What would you employees be offered if they decided to look for another position?
  3. Develop a communication strategy With all the buzz in the media currently, you need to keep your staff in the loop about how and why you came to your decision

Not legal advice

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Karen Kirton

Karen Kirton

Founder of Amplify HR — a consulting company in Australia that specialises in enabling businesses to find, grow and keep great people.