Minimum wage increases by 1.75%

Minimum wage increases by 1.75%

The Fair Work Commission has announced a 1.75% increase to minimum wage starting from the first full pay period after 1 July 2020. The change was decided following the Fair Work Commission’s 2020 Annual Wage Review and will be rolled out in three stages. The first is already in force and effecting teachers, childcare, frontline health care & social assistance workers, and a list of various other essential services.

The three stages:

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

  • 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

Over 100 industry awards have been affected by the minimum wage increase, and a full list of effected awards have been published on the Fair Work Ombudsman website. Use the Find My Award tool to discover which award you’re covered under.

I’m not covered by an award, does this still affect me?

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. It is important to note however that the minimum wage increase does not impact workers already receiving above the minimum wage.

If you are an employer, it is imperative that you are aware of the impact and timing of the increases to avoid falling foul of your industrial and superannuation obligations. If you would like further information on the ramifications of the above changes, or any other tax matter, contact the Small Business Tax Champions for a free consultation.

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