The changes to the National Wage minimum are now in effect. Increases to Modern Awards will be staggered by industry sector.
As previously advised, the National Minimum Wage increased on 1 July 2020 by 1.75% per cent to $19.84 per hour. This equates to $753.80 per week for a full time employee.
Given the significant downturn in our economy due to COVID-19, the date of increase for employees paid under a modern award is staggered with the increase starting earlier for the lesser economically affected industries, as outlined below.
- 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.
Modern Awards have now been updated by the Fair Work Commission for Group 1 to reflect these changes.
Understanding the staggered implementation dates and implementing the new rates, penalties and allowances can be confusing, so please contact the team at Your HRmanager for advice and assistance.