Increases to minimum wages

As you may have heard, the Fair Work Annual Wage Review 2019-20 decision was handed down on Friday 19 June 2020.

The Commission awarded an increase of 1.75 per cent. The National Minimum Wage (NMW) will be $753.80 per week or $19.84 per hour.

The hourly rate has been calculated by dividing the weekly rate by 38, on the basis of the 38-hour week for a full-time employee.

This constitutes an increase of $13.00 per week to the weekly rate or 35 cents per hour to the hourly rate.

Increase to the National Minimum Wage will come into operation from the first full pay period (ffpp) commencing on or after 1 July 2020. In previous years there has been a direct correlation of NMW percentage increase and timing to increases in Modern Award rates – as with so many things, 2020 is a little different.

Awards have been separated into three Groups with each Group having a different effective date;

Group 1 Awards – from 1 July 2020

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

Group 2 Awards – from 1 November 2020

  • Construction
  • Manufacturing
  • A range of other industries

Group 3 Awards – from 1 February 2021

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

Note: For anyone not covered by an award or an agreement, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020.

Further information can be found at https://www.fairwork.gov.au/about-us/news-and-media-releases/website-news/the-commission-has-announced-a-1-75-increase-to-minimum-wages