National minimum wage increase starts today
The national minimum wage rises today to $19.84 per hour (up from $19.49), or $753.80 per week (up from $740.80) with implementation staggered across industries.
The Fair Work Commission (FWC) announced a 1.75 per cent increase to the national minimum wage, following its Annual Wage Review. This increase applies from the first full pay period starting on or after today.
Employees covered by awards will also have base rates increased by 1.75 per cent, however, these increases to award wages begin on three different dates for different groups of awards:
- Group one awards such as Frontline Heath Care & Social Assistance Workers; Teachers and Child Care; and other Essential Services increase from today (1 July 2020);
- Group two awards such as Construction; Manufacturing and many other industries increase from 1 November 2020;
- Group three awards such as Accommodation and Food Services; Arts and Recreation Services; Aviation; Retail and Tourism increase from 1 February 2021.
A list of all awards by group can be found at When will my award increase.
Fair Work Ombudsman Sandra Parker said workplaces are expected to ensure all their employees are paid at least the relevant minimum wage, in line with the Fair Work Commission’s decision.
“The Fair Work Ombudsman has free online tools available to help employers comply with their workplace obligations, which have been updated to reflect the new pay rates.”
“We urge all businesses to use our Pay and Conditions Tool to check the lawful minimum rates they need to pay their staff, or to contact us directly for free assistance,” Parker said.
The new minimum wages will apply to any work an employee performs while they’re in the JobKeeper scheme, if they get their pay rate from an award or the national minimum wage.For more details check the JobKeeper and the Annual Wage Review 2020 and the JobKeeper wage subsidy scheme.