National Minimum Wage increased by 1.75% from 1 July 2020.
On Friday 19 June 2020 the Fair Work Commission handed down the Annual Wage Review 2019–20 decision.
Key Feature of the Decision
- The National Minimum Wage has been increased by 1.75% to $753.80 per week, or $19.84 per hour. The minimum wage increase will take effect from the first full pay period on or after 1 July 2020.
- Modern Award minimum rates of pay will also increase by 1.75%. Modern Award increases will have staggered operational times:
Award Group Operative Date Group 1 1 July 2020 Group 2 1 November 2020 Group 3 1 February 2021
See below for a list of the Modern Awards in each group.
What this means for businesses
Businesses that pay employees in line with the National Minimum Wage need to make sure that employees are paid in accordance with the new minimum rates from the first full pay period on or after 1 July 2020.
Business that pay employees in line with Modern Awards need to make sure that employees are paid in accordance with the new minimum rates from the first full pay period on or after the operative day for the relevant Modern Award.
For enterprise agreement covered employees, business must ensure that the base rates in the enterprise agreement will not fall below the new base rates in the relevant Modern Award or the National Minimum Wage.
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