Minimum wage to increase; introduction to be staggered through COVID-affected awards

Minimum wage to increase; introduction to be staggered through COVID-affected awards

19 June 2020 Authored by: Annie Smeaton, Riley Anastasio   |   Topics: Workplace relations and safety

What are the increases?

The national minimum wage will increase to $753.80 per week (or $19.84 per hour). The weekly rate is based on a 38 hour week for a full-time employee. This constitutes an increase of $13 per week, or 35 cents an hour.

Additionally, minimum wages in all modern awards will increase by 1.75%. This will be done in a 3-group staggered manner, with industries that have been less affected by COVID-19 receiving the increase from the first full pay period starting on or after 1 July 2020. The remaining awards will receive the increase on either 1 November 2020 or 1 February 2021, depending on which group the award falls under. Employers should check the updated wage rates in the applicable modern award, including when it will become effective.

The 1.75% increase will also apply to:

  • junior employees
  • employees to whom training arrangements apply
  • employees with a disability.

Employers should also check if there are other additional costs in any piece rates or allowances that use the base rate of pay in the modern award for calculation.

Information about the minimum wage increases is available from:

https://www.fwc.gov.au/documents/wage-reviews/2019-20/decisions/2020fwcfb3500.pdf or https://www.fwc.gov.au/awards-agreements/minimum-wages-conditions/annual-wage-reviews/annual-wage-review-2019-20

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