In June this year, the Fair Work Commission announced the result of their annual wage review: a 1.75% increase to minimum wages.
While the increase is usually applied to all awards from 1 July, the extraordinary events of 2020 led to the Commission deciding to increase groups of awards in three separate stages.
Group 1 Awards: including frontline health care, social assistance, teachers, childcare and other essential services were increased on 1 July 2020.
On 1 November 2020, increases to Group 2 Awards will occur. These awards include:
· A range of other industries.
The new minimum wages will start from the first full pay period commencing on or after 1 November 2020. For the full list of these awards see here The third and final minimum wage increase for Group 3 Awards will occur on 1 February 2021
What do I need to Do?
If you have employees that fall under any of the Group 2 Awards, then it is the time to review their current wage rate and, if necessary, increase their rate to the new award minimum. Remember, employees cannot be paid less than the appropriate minimum rate, even if they agree to it.
Interaction with the JobKeeper Payment
The new minimum wage applies to any work an employee performs while they are in the JobKeeper scheme, if they get their pay rate from an award or the national minimum wage. As always, if we can be of any assistance, please call the office on 02 4402 8913 or email email@example.com and we will be happy to help.