Each year, a review of the national minimum wage (NMW) and modern award minimum wages is completed. The 𝘍𝘢𝘪𝘳 𝘞𝘰𝘳𝘬 𝘊𝘰𝘮𝘮𝘪𝘴𝘴𝘪𝘰𝘯 (FWC) delivered its annual wage review decision on earlier today (19 June 2020). Below is a brief insight into the considerations, determinations and how this may impact your business.

The RBA Governor commented ‘The Australian economy is going through a very difficult period and is experiencing the biggest economic contraction since the 1930s. In April, total hours worked declined by an unprecedented 9 per cent and more than 600,000 people lost their jobs, with many more people working zero hours. Household spending weakened very considerably and investment plans are being deferred or cancelled…the nature and speed of the expected recovery, remains highly uncertain and the pandemic is likely to have long-lasting effects on the economy.’

What are the changes?

The minimum wage will be increased by 1.75% from $740.80 per week or $19.49 per hour to $753.80 per week or $19.84 per hour. There will be three groups, with the 1𝘴𝘵 𝘎𝘳𝘰𝘶𝘱 of Awards increases commencing from 1 July 2020, the 2𝘯𝘥 𝘎𝘳𝘰𝘶𝘱 from 1 November 2020 and the 3𝘳𝘥 𝘎𝘳𝘰𝘶𝘱 from 1 February 2021. ⁠

What Awards are Increasing from 1 July?

The 1𝘴𝘵 𝘎𝘳𝘰𝘶𝘱 of Awards that are increasing are: ⁠

〰️Aboriginal Community Controlled Health Services Award 2020;
〰️Aged Care Award 2010;
〰️Ambulance and Patient Transport Industry Award 2020;
〰️Banking, Finance & Insurance Award 2010;
〰️Cemetery Industry Award 2020;
〰️Children’s Services Award 2010;
〰️Cleaning Services Award 2010;
〰️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 2010;
〰️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.

“This is frustrating, COVID-19 impacted my business”. 
The 𝘍𝘢𝘪𝘳 𝘞𝘰𝘳𝘬 𝘊𝘰𝘮𝘮𝘪𝘴𝘴𝘪𝘰𝘯 (FWC) observed that the COVID-19 pandemic has cast a large shadow over the current economic environment. Whilst it may have impacted your business, it was not consistent across all industries. Recognising these conditions and understanding the impact to different industries the FWC created the 3 Groups with varying effective dates.

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Full Direction letter can be read HERE. 

Feel free to get in touch to understand how this impacts your business and to conduct a Pay Audit in preparation for these increases. ⁠

enquiries@positivehr.com.au or +61 404 922 125