Annual Wage Review - 1.75% increase to base pay rates
The Fair Work Commission (FWC) has announced a 1.75% increase to minimum wages following its 2020 Annual Wage Review. The new National Minimum Wage (NMW) will be $753.80 per week or $19.84 per hour. The increase applies to base pay rates from the first full pay period starting on or after 1st July 2020. This constitutes an increase of $13.00 per week to the weekly rate, or 35 cents per hour to the hourly rate.
The wage increase takes effect in a staged implementation. It applies to the first full pay period after the relevant start date. Check all allowances, penalty rates and base rates of pay are increased appropriately in software as required.
Staged Implementation
The 1.75% increase will apply to minimum rates in Modern Awards in 3 stages.
Group 1 Awards – from 1st July 2020
Frontline Heath Care & Social Assistance Workers
Teachers and Child Care
Other Essential Services
For a complete list of awards in Group 1 – Group 1
Group 2 Awards – from 1st November 2020
Construction
Manufacturing
A range of other industries
For a complete list of awards in Group 2 – Group 2
Group 3 Awards – from 1st February 2021
Accommodation and Food Services
Arts and Recreation Services
Aviation
Retail
Tourism
For a complete list of awards in Group 3 – Group 3
What do I need to do?
The FWC are updating their pay tools with the new rates. Ensure your business is ready to pay the increase to employees as at the appropriate date.
Who does the increase apply to?
The change only applies to employees that derive their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.
Most employees are covered by an award. If you're not sure which award applies to you or your client's employees, you can use Find my award on the Fair Work website.
Of course, if you'd like to discuss any of the above information, please feel free to reach out via email to easybooks@koutsos.com.au or call Linda on 0402 399 480.