National Minimum Wage and Modern Award Wages increase by 1.75%

Each year the Annual Wage Review is undertaken by an Expert Panel of the Fair Work Commission (Panel).

National Minimum Wage

This year, the Panel has determined to increase the National Minimum Wage (NMW) by 1.75%. From the first full pay period on or after 1 July 2020, the NMW will be $753.80 per week (or $19.84 per hour).

This is an increase of $13.00 per week.

The casual loading is maintained at 25%.

Modern Award Wages

In addition, the Panel has determined that modern award wages will increase by 1.75%. However, unlike previous years, the Panel has decided to implement different start dates for different groups of modern awards based on how the COVID-19 pandemic (Pandemic) has impacted certain industries.

For those industries less affected by the Pandemic (Group 1 Modern Awards), the increase will commence from the first full pay period on or after 1 July 2020.

For those industries adversely impacted by the Pandemic, but to a “lesser” extent, (Group 2 Modern Award)s, the increase will commence from the first full pay period on or after 1 November 2020.

For those industries who have been most adversely affected by the Pandemic (Group 3 Modern Awards), the increase will commence from the first full pay period on or after on 1 February 2021.

Which Group are you in?

Group 1 Modern Awards include the following:

  • Aboriginal Community Controlled Health Services Award 2020;
  • Aged Care Award 2010;
  • Ambulance and Patient Transport Industry Award 2020;
  • Banking, Finance and Insurance Award 2020;
  • Cemetery Industry Award 2020;
  • Children’s Services Award 2010;
  • Cleaning Services Award 2020;
  • Corrections and Detention (Private Sector) Award 2020;
  • Educational Services (Schools) General Staff Award 2020;
  • Educational Services (Teachers) Award 2010;
  • Electrical Power Industry Award 2020;
  • Fire Fighting Industry Award 2020;
  • Funeral Industry Award 2010;
  • Gas Industry Award 2020;
  • Health Professionals and Support Services Award 2020;
  • Medical Practitioners Award 2020;
  • Nurses Award 2010;
  • Pharmacy Industry Award 2020;
  • Social, Community, Home Care and Disability Services Industry Award 2010;
  • State Government Agencies Award 2020; and
  • Water Industry Award 2020.

Group 2 Modern Awards include the following:

  • Aluminium Industry Award 2020;
  • Animal Care and Veterinary Services Award 2020;
  • Aquaculture Industry Award 2020;
  • Architects Award 2020;
  • Asphalt Industry Award 2020;
  • Australian Government Industry Award 2016;
  • Black Coal Mining Industry Award 2010;
  • Book Industry Award 2020;
  • Broadcasting, Recorded Entertainment and Cinemas Award 2010; 145
  • Building and Construction General On-site Award 2010;
  • Business Equipment Award 2020;
  • Car Parking Award 2020;
  • Cement, Lime and Quarrying Award 2020;
  • Clerks—Private Sector Award 2020;
  • Coal Export Terminals Award 2020;
  • Concrete Products Award 2020;
  • Contract Call Centres Award 2020;
  • Cotton Ginning Award 2020;
  • Dredging Industry Award 2020;
  • Educational Services (Post-Secondary Education) Award 2020;
  • Electrical, Electronic and Communications Contracting Award 2010;
  • Food, Beverage and Tobacco Manufacturing Award 2010;
  • Gardening and Landscaping Services Award 2020;
  • Graphic Arts, Printing and Publishing Award 2010;
  • Higher Education Industry-Academic Staff-Award 2020;
  • Higher Education Industry-General Staff-Award 2020;
  • Horticulture Award 2010;
  • Hydrocarbons Field Geologists Award 2020;
  • Hydrocarbons Industry (Upstream) Award 2020;
  • Joinery and Building Trades Award 2010;
  • Journalists Published Media Award 2020;
  • Labour Market Assistance Industry Award 2020;
  • Legal Services Award 2020;
  • Local Government Industry Award 2020;
  • Manufacturing and Associated Industries and Occupations Award 2020;
  • Marine Towage Award 2020;
  • Maritime Offshore Oil and Gas Award 2020;
  • Market and Social Research Award 2020;
  • Meat Industry Award 2020;
  • Mining Industry Award 2020;
  • Miscellaneous Award 2020;
  • Mobile Crane Hiring Award 2010;
  • Oil Refining and Manufacturing Award 2020;
  • Passenger Vehicle Transportation Award 2020;
  • Pastoral Award 2010;
  • Pest Control Industry Award 2020;
  • Pharmaceutical Industry Award 2010;
  • Plumbing and Fire Sprinklers Award 2010;
  • Port Authorities Award 2020;
  • Ports, Harbours and Enclosed Water Vessels Award 2020;
  • Poultry Processing Award 2020;
  • Premixed Concrete Award 2020;
  • Professional Diving Industry (Industrial) Award 2020;
  • Professional Employees Award 2020;
  • Rail Industry Award 2020;
  • Real Estate Industry Award 2020;
  • Road Transport (Long Distance Operations) Award 2020;
  • Road Transport and Distribution Award 2020;
  • Salt Industry Award 2010;
  • Seafood Processing Award 2020;
  • Seagoing Industry Award 2020;
  • Security Services Industry Award 2020;
  • Silviculture Award 2020;
  • Stevedoring Industry Award 2020;
  • Storage Services and Wholesale Award 2020;
  • Sugar Industry Award 2020;
  • Supported Employment Services Award 2020;
  • Surveying Award 2020;
  • Telecommunications Services Award 2010;
  • Textile, Clothing, Footwear and Associated Industries Award 2010;
  • Timber Industry Award 2010;
  • Transport (Cash in Transit) Award 2020;
  • Waste Management Award 2020; and
  • Wool Storage, Sampling and Testing Award 2010.

Group 3 Modern Awards include the following:

  • Air Pilots Award 2020;
  • Aircraft Cabin Crew Award 2020;
  • Airline Operations-Ground Staff award 2020;
  • Airport Employees Award 2020
  • Alpine Resorts Award 2020;
  • Amusement, Events and Recreation Award 2020;
  • Commercial Sales Award 2020;
  • Dry Cleaning and Laundry Industry Award 2020;
  • Fast Food Industry Award 2010;
  • Fitness Industry Award 2010;
  • General Retail Industry Award 2010;
  • Hair and Beauty Industry Award 2010;
  • Horse and Greyhound Training Award 2020;
  • Hospitality Industry (General) Award 2020;
  • Live Performance Award 2010;
  • Mannequins and Models Award 2020
  • Marine Tourism and Charter Vessels Award 2020;
  • Nursery Award 2020;
  • Professional Diving Industry (Recreational) Award 2020;
  • Racing Clubs Events Award 2010;
  • Racing Industry Ground Maintenance Award 2020;
  • Registered and Licensed Clubs Award 2010;
  • Restaurant Industry Award 2020;
  • Sporting Organisations Award 2020;
  • Travelling Shows Award 2020; and
  • Vehicle Repair, Services and Retail Award 2020.

Special National Minimum Wages

  1. The NMW for award/agreement free junior employees will be set by reference to the junior wage percentage scale in the Miscellaneous Award.
  2. The NMW for award/agreement free employees with disability whose productivity is not affected, a minimum wage of $753.80 per week or $19.84 per hour based on a 38-hour week.
  3. The NMW for award/agreement free employees whose productivity is affected, an assessment under the supported wage system, subject to a minimum payment fixed under the SWS Schedule.
  4. The apprentice wage provisions, and the National Training Wage Schedule in the Miscellaneous Award 2020 will apply for award/agreement free employees to whom training arrangements apply.

You can read the full decision here.

What does this mean for employers?

  1. For employers that have full-time employees who are not subject to modern awards and enterprise agreements, they must review pay rates and ensure that their employees are paid at least $753.80 per week (or at least $19.84 per hour), from the first full pay period on or after 1 July 2020.
  2. For employers that have part-time employees who are not subject to modern awards and enterprise agreements, they must review pay rates and ensure that their employees are paid at least $19.84 per hour, from the first full pay period on or after 1 July 2020.
  3. For employers that have casual employees who are not subject to modern awards and enterprise agreements, they must review pay rates and ensure that their employees are paid at least $19.84 per hour (plus a 25% casual loading), from the first full pay period on or after 1 July 2020.
  4. For employers who have employees who have an award or agreement that applies, they need to review pay rates and ensure wages (including annualised salaries paid in accordance with awards/agreements) are paid pursuant to it, noting the 1.75% increase to the minimum wage rates in modern awards.
  5. For employers who have, award/agreement free junior employees, apprentices and trainers or employees with a disability, they must review pay rates and ensure that their employees are paid at least the relevant national minimum wage.

If you would like to discuss this further and the implications for your business please contact our Employment + Workplace Relations Partner, Erin Lynch.

Erin Lynch, Partner
M +61 477 330 202
E erin.lynch@vincentyoung.com.au

The contents of this publication do not constitute legal advice and are for general information purposes only.  You should seek legal advice regarding your particular circumstances.