Every year the Fair Work Commission undertakes a review of the minimum wages in modern awards. This review considers the current economic environment, feedback from employers, unions and industry bodies as well as taking into consideration other factors such as the cost of living.
This year, one of the primary factors for consideration was the impact that COVID-19 has had on businesses, particularly their ability to retain staff post the pandemic.
After lengthy consultation and a review of all of the above factors, the FWC has announced an increase of 1.75% to the minimum wages in modern awards. This will see the national minimum wage increase to $753.80/week ($19.84/hour), an increase of $13/week.
The significant difference this year is the date in which the increase will come into operation. The FWC has identified the impact COVID-19 has had on many industries. As such, they have classified all modern awards into 3 categories:
Group 1 – 1.75% increase will be effective from the first full pay period on or after 1 July 2020.
Group 2 – 1.75% increase will be effective from the first full pay period on or after 1 November 2020.
Group 3 – 1.75% increase will be effective from the first full pay period on or after 1 February 2021.
For a full list of the awards that fall under each category, visit https://www.fwc.gov.au/awards-agreements/minimum-wages-conditions/annual-wage-reviews/annual-wage-review-2019-20