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Workplace Relations Update – Minimum Wage Increase

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By James Sanders, Associate

The Fair Work Commission (‘Commission’) decided on 19 June 2020 to increase both the national minimum wage and the modern award minimum wages by 1.75%.

This takes the national minimum wage from $19.49 per hour ($740.80 per week) to $19.84 per hour ($753.80 per week).

This decision will impact all employers as follows:

  1. employers who employ employees under modern awards must ensure the rates paid to their employees are no less than the award minimum rate for each classification;
  2. employers who employ employees under registered agreements (i.e. certified agreements, collective agreements, enterprise agreements, AWAs or ITEAs) must ensure that the base rates paid to employees exceed the increased base rates of pay in the equivalent modern awards; and
  3. employers who employ employees not covered by a modern award or a registered agreement will have to ensure that the rates paid to employees exceed the national minimum wage.

The increases to minimum wages will take effect from the first full pay period commencing on or after one of the following dates:

  • 1 July 2020;
  • 1 November 2020; and
  • 1 February 2021.

The applicable increase date is based on which group a particular modern award was assigned to by the Fair Work Commission. Please see Modern Award Groups.

MST Lawyers offers an Annual Updater Service to assist employers that are uncertain how to calculate the new minimum wage rates that apply to their workforce.  Please find more information regarding our Annual Updater Service and Registration Form.

For more information, please contact our Employment Law team by email or on telephone +61 8540 0200.