Minimum wages set to rise by 1.75%
The Fair Work Commission has decided to increase the national minimum wage by 1.75% from $19.49 per hour and $740.80 per week to $19.84 per hour and $753.80 per week. Modern Award rates of pay will also increase by 1.75%, but these will be staggered over the next 8 months during 2020 and 2021.
Modern Award Increases
In response to the COVID-19 crisis and its economic impacts, the 1.75% increases will be introduced over the next 8 months, with different dates these increases must be applied from, depending on the Modern Award:
Group 1 Modern Awards - from the first full pay period starting on or after 1 July 2020
Frontline Health Care & Social Assistance Workers
Teachers and Child Care
Other Essential Services
Group 2 Modern Awards - from the first full pay period starting on or after 1 November 2020
Construction
Manufacturing
A range of other industries
Group 3 Modern Awards - from the first full pay period starting on or after 1 February 2021
Accommodation and Food Services
Arts and Recreation Services
Aviation
Retail
Tourism
Click here for the full list of Modern Awards and relevant increase dates.
Minimum Wages and JobKeeper
Remember that if your business is participating in the JobKeeper scheme, the new minimum wages will still need to be passed onto any employees that are performing work whilst in the JobKeeper scheme, if they are covered by a Modern Award or the national minimum wage.
If you need advice or assistance in understanding the increases to the minimum rates of pay, please contact IR Legal Solutions to discuss.
This content is not be a substitute for legal advice and is for information only. Employers should obtain advice that is specific to their circumstances and business operations, and not rely on this publication as legal advice.