Fair Work Australia have made a decision to increase minimum and award wages by 1.75% and this increase is effective in three stages depending upon the Award Group your employees fall into.
Group 1 – From 1 July 2020
- Frontline Heath Care & Social Assistance Workers
- Teachers and Child Care
- Other Essential Services
Group 2 – From 1 Nov 2020
- Construction
- Manufacturing
- A range of other industries
Group 3 – From 1 Feb 2021
- Accommodation and Food Services
- Arts and Recreation Services
- Aviation
- Retail
- Tourism
To see a list of all awards in these groups go to fairwork.gov.au
If your employee is not on an award
If you are not covered by an award or agreement, then the new minimum wage will be $753.80 per week or $19.84 starting first full pay period after 1st July 2020.
What do you need to do as an employer?
This rate applies to all employees who aren’t covered by an award or agreement.
- For award based employees – the increase may be absorbed in the pay rate where it is in excess of the award rate and there is specific contractual agreement between an employer and employee to do so.
- For non award employees – the obligation is for employers to ensure that an employee is being paid more than the minimum wage rate for all their hours of work.
FWA is working to update their Pay Tools to reflect the Minimum Wage Changes
Employers should check the Fair Work Australia website (www.fwa.gov.au) for pay rate revisions to modern awards and ensure the appropriate increase is passed on in the first pay period after 1 July 2020.
See this page for updated Pay information.
If you would like to know more about minimum wages go here.
If you require a current 2020 Employment Contract please see RP Emery’s wide range of Fair Work Compliant Employment Agreements.