On Friday, the Fair Work Commission announced a 1.75% increase to minimum wages.
This means an increase of approximately $13.00 per week to those on the national minimum wage.
In light of the on-going impacts of the COVID-19 pandemic, the Commission took into consideration the profound economic impact government-imposed restrictions have had on businesses.
Because the impact of COVID-19 has not been consistent across all sectors of the economy, the increase will follow a staged approach, depending on the industry. The Commission has grouped the awards based on those industries and sectors least impacted to most impacted by the pandemic.
For employees covered by an award, these stages are:
For example, industry sectors such as accommodation, food services, arts, recreation, aviation, retail trade and tourism have been most adversely affected by the pandemic. Therefore, the wage increase for these sections won’t apply until 1st February.
Anyone not covered by an award or agreement, the new national minimum wage will be $753.80 per week (or $19.84 per hour). This applies from the first full pay period starting on or after 1st July 2020.
When Will My Award Rates Increase?
The group your award is in will determine when the increase will be applied.
Group 1 Awards will have their increase apply from 1 July 2020. These awards include:
- Frontline Heath Care & Social Assistance Workers
- Teachers and Child Care
- Other Essential Services
Group 2 Awards will have their increase apply from 1 November 2020, and include:
- A range of other industries
Group 3 Awards will have their increase apply from 1 February 2021. The Commission determined these awards are in industries that have been most adversely impacted by the pandemic, and include:
- Accommodation and Food Services
- Arts and Recreation Services
What Do I Need To Do?
As a business owner, it is important to make sure you are aware of:
- Which award impacts your workers
- Which stage that award is in
- When to apply the increase
- How much your workers’ pay needs to increase
For help implementing this increase contact us on (08) 8322 2279 or via our website and one of our friendly staff can help.