The Annual Wage increases for Group 2 Awards, as advised in July, are just around the corner. Do these apply to your employees?
As previously advised, the annual wage decision from June 2020 announced that the national minimum wage increased by 1.75%, with staggered dates for increases split across three groups.
The increases for Group 1 Awards were effective 1 July 2020, with the increases for Group 2 Awards becoming effective from the first pay period on or after 1 November 2020. There are over 60 Awards in the Group 2 list, so please check it carefully to see if the changes apply to Awards covering your staff.
Next Steps for Employers
- Check if any of your employees are covered by Awards in Group 2.
- Check your employees’ current wages, penalty rates and allowances.
- If you pay minimum wage rates, penalties and or allowances under the relevant Award, prepare to increase these in the first pay period on or after 1 November 2020. Updated Awards should be published before the end of October.
Should your business pay above the minimum wage rates you may be able to absorb the increases without making any changes – however check these carefully.
We expect the updated Modern Awards to be issued by the Fair Work Commission before the end of this month.
Just a reminder that Group 3 Award increases will come into effect in 1 February 2021.
Please contact the team at Your HRmanager for assistance. implementing the new rates, penalties and allowances.