Minimum Wage Increases by 1.75%

An increase to the minimum wage of 1.75% will start rolling out for the first full pay period from 1 July 2020.

The increase applies to minimum rates in awards in 3 stages:

·       Group 1 Awards – from 1 July 2020

o    Frontline Heath Care & Social Assistance Workers

o    Teachers and Child Care

o    Other Essential Services

·       Group 2 Awards – from 1 November 2020

o    Construction

o    Manufacturing

o    A range of other industries

·       Group 3 Awards – from 1 February 2021

o    Accommodation and Food Services

o    Arts and Recreation Services

o    Aviation

o    Retail

o    Tourism

You can find the full list of impacted Awards on the Fair Work Ombudsman’s website.

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

The minimum wage increase does not impact on workers receiving above the minimum wage.

For employees at or close to the minimum wage, it is essential that employers are aware of the impact and timing of the increase to avoid falling foul of their industrial and superannuation obligations.

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