Fair Work Commission Announces Annual Wage Increase of 1.75%
Every year the Fair Work Commission undertakes a review of the minimum wages in modern awards. This review considers the current economic environment, feedback from employers, unions and industry bodies as well as taking into consideration other factors such as the cost of living.
As i mentioned in a previous blog this year, one of the primary factors for consideration was the impact that COVID-19 has had on businesses, particularly their ability to retain staff post the pandemic.
After lengthy consultation and a review of all of the above factors, the FWC has announced an increase of 1.75% to the minimum wages in modern awards. This will see the national minimum wage increase to $753.80/week ($19.84/hour), an increase of $13/week.
The significant difference this year is the date in which the increase will come into operation. The FWC has identified the impact COVID-19 has had on many industries. As such, they have classified all modern awards into 3 categories:
Group 1 - 1.75% increase will be effective from the first full pay period on or after 1 July 2020.
Group 2 - 1.75% increase will be effective from the first full pay period on or after 1 November 2020.
Group 3 - 1.75% increase will be effective from the first full pay period on or after 1 February 2021.
The modern awards in Group 1 cover industries and sectors less affected by the pandemic and, in addition, includes modern awards applying to frontline health care and social assistance workers, teachers and childcare workers and employees engaged in other essential services, who have continued working throughout the pandemic, to keep the community safe; to protect the vulnerable and those at risk; and to keep the economy functioning.
Group 2 and Group 3 are those more adversely impacted by the Pandemic, to varying degrees. Below is a link to the full award list by group.
How We Can support you
We have developed a number of resources to support you in implementing the increase for your business including:
An hourly rate increase letter to notify award covered employees of the increase
An annualised salary increase letter - for employees covered by an annualised salary in a modern award
A salary increase letter for award free employees
If you would like access to these free resources or support in understanding your Award position please reach out to us on firstname.lastname@example.org
For the full decision and the list of Awards by group list please click here