The Fair Work Commission has recently announced a 1.75% increase to minimum wages, including modern award rates.

Due to the current pandemic situation, these increases will be rolled out across 3 different time periods, according to the relevant industry your business employs people in.

In all cases, the wage increase will apply from the first full pay period that falls on or after the below dates.

Group 1 Awards – from 1 July 2020

  • Frontline Health Care & Social Assistance Workers
  • Teachers and Child Care
  • Other Essential Services

Group 2 Awards – from 1 November 2020

  • Construction
  • Manufacturing
  • A range of other industries (most other awards)

Group 3 Awards – from 1 February 2021

  • Accommodation and Food Services
  • Arts and Recreation Services
  • Aviation
  • Retail
  • Tourism

These increases can also apply to employees under the JobKeeper scheme. When calculating the amount an employee in the JobKeeper scheme needs to be paid, the employee’s usual pay for work performed in the fortnight could be also affected by the minimum wage increase.

For anyone not covered by an award or an 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 1 July 2020.

If you’ve got questions about which increase group your business is covered by, get in touch with our Workplace Partners on 1300 766 380.

 

*This is general information only and doesn’t take your specific circumstances into account.