Minimum Wage Decision 2020

​On Friday 19 June 2020, the Fair Work Commission handed down its latest decision regarding the National Minimum Wage.  With the impact to business by COVID-19, the application of the increase has been varied with different industries set to apply the increases at different times.   As an employer, you need to be across these changes and how they apply to your business.

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1The Minimum Wage Decision 2020
The Fair Work Commission has determined that the minimum wage will increase by 1.75% and this is to apply to all award wages.   The new national minimum wage will be $753.80 per week or $19.84 per hour.

The increase is to be applied at different times based on the industry group your Award falls under.

Group 1 – Commence increase from 1 July 2020

• Frontline Heath Care & Social Assistance Workers
• Teachers and Child Care
• Other Essential Services

Group 2 – Commence increase from 1 November 2020

• Construction
• Manufacturing
• A range of other industries

Group 3 – Commence increase from 1 February 2021

• Accommodation and Food Services
• Arts and Recreation Services
• Aviation
• Retail
• Tourism

For a full list of the groups, click here. 

WHAT YOU NEED TO DO

• If you are currently paying anyone the minimum entitlement under the applicable Award, it must increase by the applicable date as outlined above.
• If you are paying above the National Minimum Wage or prescribed Award rate, you are not obliged to increase rates of pay following this decision.  However, you do need to ensure that the rates you are paying are at least the same or better than the new minimum once this 1.75% increase has been applied.
• For those with Individual Flexibility Agreements, you will need to review arrangements and ensure that employees remain better off overall when compared to the newly increased Modern Award rates.
• If you have a Collective Agreement or Enterprise Bargaining Agreement, you need to ensure that employees remain better off overall when compared to the increase Award rate. 
• For those applying annualised salary arrangements, you will need to conduct an audit and assess the payments against the new Award rates and working patterns to ensure the annual salary compensates for award entitlements.
• For those that have Allowances within the Award, be aware that these may also be impacted as the are expressed as a percentage of the standard rate of pay and will need to increase accordingly. 

If you need assistance auditing or reviewing your current rates of pay to ensure you are on top of all your obligations, contact the HR Staff n’ Stuff team for help.

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