2020 Wage Increases
It’s that time of year again and whilst what would happen this year in relation to the minimum wage was a little unknown, the Fair Work Commission has now made a decision, today, on Friday 19th June 2020. The Fair Work Commission granted award covered workers a 1.75% pay rate increase (last year’s increase was 3%).
The economy was taken into consideration as was COVID-19, relative living standards and the needs of the low paid.
Effective 1st July 2020 the national minimum wage will be increased by $13 a week, to $753.80 a week. The flow on effect to Awards is a 1.75% increase, however, because of the impact of COVID-19 on different industries to varying degrees their will be different operative dates for different industry modern awards.
The National Minimum Wage and Group 1 Awards, effective 1st July will be frontline health care and social assistance workers, teachers and childcare workers and other essential services. Group 2 Awards, effective 1st November will be construction, manufacturing and most other industries and others being the hardest-hit industries such as accommodation, arts and recreation, aviation, retail, and tourism will be effective 1st February 2021.
If your employees are award covered and award paid you will need to ensure your payroll is updated reflecting the new rates by the effective date.
If your employees are award covered but paid above award and / or have an Individual Flexibility Agreement, it is important to you check and calculate that you continue to pay above award including any benefits that you may have rolled into the above award rate.
If your employees are not covered by an award you don’t need to do anything however important to ensure they continue to paid a fair market rate.
If you are unsure if your employees are award covered or not, or unsure of which award or which category your relevant award/s fall into, please get in contact and we can help. You can call us on 07 3890 2066 or email admin@hrbd.com.au and we can help.
The HR Business Direction Team