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• Fair Work Annual Wage Review 2019-2020

Get ready for a 1.75% increase to base pay rates

The Fair Work Commission (FWC) has announced a 1.75% increase to minimum wages following its 2020 Annual Wage Review. The new National Minimum Wage (NMW) will be $753.80 per week or $19.84 per hour. The increase applies to base pay rates from the first full pay period starting on or after 1st July 2020. This constitutes an increase of $13.00 per week to the weekly rate or 35 cents per hour to the hourly rate.

Bookkeeping

The wage increase takes effect in a staged implementation. It applies to the first full pay period after the relevant start date.

Example: For those awards with a 1st July 2020 start date; if the employees are normally paid on the 3rd July for the pay period 29th June to 3rd July, this would be at the current rate. The increase would apply from the pay period commencing on 4th July.

Check all allowances, penalty rates and base rates of pay are increased appropriately in software as required.

Staged Implementation

The 1.75% increase will apply to minimum rates in Modern Awards in 3 stages from the first full pay period after the group date.

A complete list of awards in Group 1 (the new minimum wages will start in the following awards from the first full pay period starting on or after 1 July 2020):

• 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 Awards – from 1st November 2020

• 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 Awards – from 1st February 2021

• 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

What do I need to do?

The FWC is working on updating their pay tools with the new rates and Group 1 Awards should be ready by 1st July 2020. Ensure your business is ready to pay the increase to employees as at the appropriate date.

Who does the increase apply to?

The change only applies to employees that derive their pay rates from the national minimum wage, a modern award or in some cases a registered agreement.

Most employees are covered by an award. If you're not sure which award applies to you or your client's employees, you can use Find my award on the Fair Work website.

Parental Leave Pay

Parental Leave Pay is generally increased in line with the national minimum wage; however, we are waiting on updates on their website to confirm the increase to PPL from 1st July 2020.

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