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

HR Central