2020 Annual Wage Review Minimum Wage Increase 1.75%

Exemple

2020 Annual Wage Review Minimum Wage Increase 1.75%

The Fair Work Commission has just announced a conservative increase in the minimum wage.  The increase is based on a panel decision, that includes recommendations from Unions and other industry sectors that varied from the a 4% increase to no increase at all.  As a result the following decision was made:

1.75% National Minimum Wage Increase as at 1 July, 2020

The Fair Work Commission has announced that from the national minimum wage will increase by 1.75% to $753.80 per week. This equates to an hourly rate of $19.84 and a weekly increase of $13 per week, effective 1st July, 2020.

It has also announced an increase of 1.75% in modern award minimum wages, which govern minimum mandatory pay rates in certain occupations or industries.

This year, there has been a split in groupings as to when the increases come in to effect, due to the COVID-19 pandemic and the impact it has had on particular industries.  That is Group 1, being least effected, such as essential services, to Group 3 being the most affected, tourism, retail, for example.

To be clear; It is a 1.75% increase for all Groups – it is just the effective dates that change.

Group 1:  Effective 1 July 2020

  • Aboriginal Community Controlled Health Services Award 2020
  • Aged Care Award 2010
  • Ambulance and Patient Transport Industry Award 2020
  • Banking, Finance and Insurance Award 2020
  • Cemetery Industry Award 2020
  • Children’s Services Award 2010
  • Cleaning Services Award 2020
  • Corrections and Detention (Private Sector) Award 2020
  • Educational Services (Schools) General Staff Award 2020
  • Educational Services (Teachers) Award 2010
  • Electrical Power Industry Award 2020
  • Fire Fighting Industry Award 2020
  • Funeral Industry Award 2010
  • Gas Industry Award 2020
  • Health Professionals and Support Services Award 2020
  • Medical Practitioners Award 2020
  • Nurses Award 2010
  • Pharmacy Industry Award 2020
  • Social, Community, Home Care and Disability Services Industry Award 2010
  • State Government Agencies Award 2020
  • Water Industry Award 2020

Group 2: Effective 1 November 2020

  • Aluminium Industry Award 2020
  • Animal Care and Veterinary Services Award 2020
  • Aquaculture Industry Award 2020
  • Architects Award 2020;
  • Asphalt Industry Award 2020
  • Australian Government Industry Award 2016
  • Black Coal Mining Industry Award 2010
  • Book Industry Award 2020
  • Broadcasting, Recorded Entertainment and Cinemas Award 2010
  • Building and Construction General On-site Award 2010
  • Business Equipment Award 2020
  • Car Parking Award 2020
  • Cement, Lime and Quarrying Award 2020
  • Clerks—Private Sector Award 2020
  • Coal Export Terminals Award 2020
  • Concrete Products Award 2020
  • Contract Call Centres Award 2020
  • Cotton Ginning Award 2020
  • Dredging Industry Award 2020
  • Educational Services (Post-Secondary Education) Award 2020
  • Electrical, Electronic and Communications Contracting Award 2010
  • Food, Beverage and Tobacco Manufacturing Award 2010
  • Gardening and Landscaping Services Award 2020
  • Graphic Arts, Printing and Publishing Award 2010
  • Higher Education Industry-Academic Staff-Award 2020
  • Higher Education Industry-General Staff-Award 2020
  • Horticulture Award 2010;
  • Hydrocarbons Field Geologists Award 2020
  • Hydrocarbons Industry (Upstream) Award 2020
  • Joinery and Building Trades Award 2010
  • Journalists Published Media Award 2020
  • Labour Market Assistance Industry Award 2020
  • Legal Services Award 2020
  • Local Government Industry Award 2020
  • Manufacturing and Associated Industries and Occupations Award 2020;
  • Marine Towage Award 2020
  • Maritime Offshore Oil and Gas Award 2020
  • Market and Social Research Award 2020
  • Meat Industry Award 2020
  • Mining Industry Award 2020
  • Miscellaneous Award 2020
  • Mobile Crane Hiring Award 2010
  • Oil Refining and Manufacturing Award 2020
  • Passenger Vehicle Transportation Award 2020
  • Pastoral Award 2010
  • Pest Control Industry Award 2020
  • Pharmaceutical Industry Award 2010
  • Plumbing and Fire Sprinklers Award 2010
  • Port Authorities Award 2020
  • Ports, Harbours and Enclosed Water Vessels Award 2020
  • Poultry Processing Award 2020
  • Premixed Concrete Award 2020
  • Professional Diving Industry (Industrial) Award 2020
  • Professional Employees Award 2020
  • Rail Industry Award 2020
  • Real Estate Industry Award 2020
  • Road Transport (Long Distance Operations) Award 2020
  • Road Transport and Distribution Award 2020
  • Salt Industry Award 2010
  • Seafood Processing Award 2020
  • Seagoing Industry Award 2020
  • Security Services Industry Award 2020
  • Silviculture Award 2020
  • Stevedoring Industry Award 2020
  • Storage Services and Wholesale Award 2020
  • Sugar Industry Award 2020
  • Supported Employment Services Award 2020
  • Surveying Award 2020
  • Telecommunications Services Award 2010
  • Textile, Clothing, Footwear and Associated Industries Award 2010
  • Timber Industry Award 2010
  • Transport (Cash in Transit) Award 2020
  • Waste Management Award 2020
  • Wool Storage, Sampling and Testing Award 2010.

Group 3: Effective 1 February 2021 

  • Air Pilots Award 2020;
  • Aircraft Cabin Crew Award 2020;
  • Airline Operations-Ground Staff award 2020;
  • Airport Employees Award 2020;
  • Alpine Resorts Award 2020;
  • Amusement, Events and Recreation Award 2020;
  • Commercial Sales Award 2020;
  • Dry Cleaning and Laundry Industry Award 2020;
  • Fast Food Industry Award 2010;
  • Fitness Industry Award 2010;
  • General Retail Industry Award 2010;
  • Hair and Beauty Industry Award 2010;
  • Horse and Greyhound Training Award 2020;
  • Hospitality Industry (General) Award 2020;
  • Live Performance Award 2010;
  • Mannequins and Models Award 2020
  • Marine Tourism and Charter Vessels Award 2020;
  • Nursery Award 2020;
  • Professional Diving Industry (Recreational) Award 2020;
  • Racing Clubs Events Award 2010;
  • Racing Industry Ground Maintenance Award 2020;
  • Registered and Licensed Clubs Award 2010;
  • Restaurant Industry Award 2020;
  • Sporting Organisations Award 2020;
  • Travelling Shows Award 2020; and
  • Vehicle Repair, Services and Retail Award 2020.
  • Wine Industry Award 2010

What does this mean for employers in Australia?

It means that rather than an across the board increase like most years, which is relatively easy to implement, it is going to be as important as ever to make sure you know which award your people are working under, or if they are working under an award at all.

It is important for every employer to acknowledge that employees cannot be paid less than their appropriate hourly rate, even if the employees agree to it.

For those who are award and agreement free – they need to be paid a minimum of $19.84 per hour from July 1.

Importantly it also means that all employees who are paid award rates will have the same 1.75% increase applied to their rates.  The dates for when this increase takes place is listed in the award listing (Groups 1,2,3, above).

In the case of employing a junior employee (an employee under 21 years of age), they should be paid a percentage of the relevant adult pay rate unless:

  • the award, enterprise agreement or other registered agreement doesn’t have junior rates, or
  • they have completed an apprenticeship and are trade qualified

The percentages that apply are usually based on the employee’s age and increase on their next birthday.

Also important at this time are employees who are on annualised salaries. If those salaries are close to the award rates in general, they may need to be increased to ensure no underpayment applies.

We understand that this can be stressful and confusing for employers!

HR Central can help clarify and calculate:

  • Award interpretation: which award your staff should be employed under
  • Award classification: which level within that award (based on age, experience, education) your staff should be allocated in to
  • Pay analysis: Whether or not you are paying the correct amount, including base rate plus any entitlements such as leave loading and penalty rates
  • If you and your employees (and your industry) are affected by this increase

It’s always better to check than to guess. Let us make it easier for you. 

Call us on 1300 717 721 or hr@hrcentral.support

 

Hr Central

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