On 19 June the Fair Work Commission (FWC) released their annual wage review decision. From 1 July 2020, the minimum wage in Australia will increase from $19.49 per hour to $19.84 per hour, equivalent to a $13 increase in a 38-hour work week (before tax). In the context of the COVID-19 pandemic, the new minimum wage will come into effect on different dates, depending on the industry. The staggered commencement dates have been designed to support the industries most adversely impacted financially by the pandemic. The new minimum wage is applicable to Group 1 from 1 July 2020, which includes healthcare, education, and childcare workers. Group 2, commencing 1 November 2020 includes construction and manufacturing employees and finally Group 3, commencing 1 February 2021 includes accommodation and food services and tourism employees, amongst others. The full list of industry awards categorized into the three stages can be found in the FWC decision here. Importantly, an entitlement to the JobKeeper subsidy will not relieve employers from applying the wage increase. Once the new minimum wage has commenced, an employee’s JobKeeper rate of pay will increase, unless their entitlement does not exceed $1500 per fortnight for the hours worked. Contact M+E for more information.
