A 1.75% increase to the minimum wage has been announced.

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A 1.75% increase to the minimum wage is on its way from 1 July 2020. This increase will apply to all awards, but the starting point for specific increases will be rolled out over three stages depending on the award applicable to your business.

As most employees are covered by an award this will effect all employees who are earning minimum wage. The new minimum wage will be increased to $753.80 per week or $19.84 per hour. This will apply from the first pay period starting on or after 1 July 2020 depending on the award.

Here is more information on what you will need to do next.

 

Who does this increase apply to?

 

You should look at the award your employees fit under and determine when the minimum wage will be increased and by how much. The 1.75% increase will be rolled out across three stages, so it is important to be aware which stage your employees are apart of. If your employees earn above the new minimum wage they will not be affected by this change.

If you are covered under a registered agreement you should check it and see whether the increase will affect you.

 

What happens next?

 

From here the commission will issue determinations and orders about how the decision will affect awards. They will also update the pay rates in each awards, the pay tools, and information and resources with the new rates.

 

When will my award increase?

 

The increase in the awards will be spread out, happening in three groups from 1 July 2020 until 1 February 2021 as follows;

 

Group 1 – from 1 July 2020

  • Frontline Heath Care & Social Assistance Workers
  • Teachers and Child Care
  • Other Essential Services

 

Group 2 – from 1 November 2020

  • Construction
  • Manufacturing
  • A range of other industries

 

Group 3 – from 1 February 2021

  • Accommodation and Food Services
  • Arts and Recreation Services
  • Aviation
  • Retail
  • Tourism

 

Where to next?

 

As always, its essential to ensure that your employees are being paid at least their minimum entitlements. You will need tup update the appropriate pay rates in your payroll system from the applicable date. It’s also a good idea to communicate these changes with your staff so everyone is on the same page.

If you need assistance with interpreting your award, you should contact Fair Work or an employment lawyer. Visit the Fair Work website here [https://www.fairwork.gov.au/]

If you need assistance with processing payroll or updating your payroll software, then you should reach out to your bookkeeper or accountant for assistance.

 

A complete list of awards in each group:

 

Group 1

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

 

Group 2

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

 

Group 3

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