Prepare for a 1.75% Wage Increase to Minimum Wages
Minimum Wage Increase 2020
The Fair Work Commission (FWC) announced on Friday 19 June 2020, its annual wage decision in the first split minimum wage decision since 1997.
The National Minimum Wage will increase by 1.75% per cent to $19.84 per hour, a $0.35 hourly rate rise. A full-time adult employee will receive $753.80 per week, an increase of $13.00 per week.
While the National Minimum Wage will increase from the first pay period on or after 1 July 2020, the Panel has determined that modern award increases will be rolled out in stages. This is to recognise that the impact of the COVID-19 pandemic has not been consistent across all sectors of industry and is intended to lessen the impact on the industries most affected by the pandemic.
- 1 July 2020 - Group 1: Frontline Health and social assistance workers; Teachers and Childcare Workers; Other essential workers
- 1 November 2020 - Group 2: Construction; Manufacturing; A range of other similar industries
- 1 February 2021 - Group 3: Accommodation and food services; Arts and recreation services; Aviation; Retail; Tourism
Next Steps for Employers
Employers who pay minimum wage rates under a Modern Award will be required to increase employees’ rates in the first pay period on or after 1 July 2020, 1 November 2020 or 1 February 2021 - depending upon which modern award applies. Click the links above to see which group your Award falls into. Updated Awards will be published before the end of June.
Employers who pay their employees the National Minimum Wage will need to increase employees’ rates in the first pay period on or after 1 July 2020.
Should your business pay above the minimum wage rates you may be able to absorb the increases without making any changes.
Contact us if you need assistance in reviewing your pay rates and penalty rates. Stay tuned for further updates on Awards, allowances and thresholds as we approach the end of this financial year.