Minimum wage increases for construction, manufacturing and more awards from 1 November 2020

In June 2020, the Fair Work Commission announced a 1.75% increase to minimum wages, with new rates coming into effect in 3 stages for different groups of awards. The first stage came effective 1 July for Group 1 Awards.

The second stage applies to Group 2 Awards and will be effective from the first full pay period on or after 1 November 2020. The Fair Work Commission is currently preparing updates to their Pay guides and Pay Calculator resources.

The minimum wage also applies to any work an employee performs while they’re in the JobKeeper scheme, if they get their pay rate from an award or the National Minimum Wage.

The 3 stages:

  1. Group 1 Awards – from 1 July 2020 and includes Frontline Heath Care & Social Assistance Workers, Teachers and Child Care and Other Essential Services.
  2. Group 2 Awards – from 1 November 2020 and includes Construction, Manufacturing and a range of other industries.
  3. Group 3 Awards – from 1 February 2021 and includes Accommodation and Food Services, Arts and Recreation Services, Aviation, Retail, and Tourism.

Visit fairwork.gov.au for the full list of awards in each group.

Other changes effective from 1 July:

  • For anyone not covered by an award or an agreement, the National Minimum Wage is $753.80 per week or $19.84 per hour.
  • Eligible employees can split their Parental Leave Pay so they take it over 2 periods within 2 years.

What you need to do

  • Adjust your payroll software to reflect the 1.75% increase the first full pay period on or after 1 November 2020.
  • Advise your employees.

As always, we are ready to assist you in any way we can. Contact your Accounting Services Director or Manager by email or call our office +61 3 9820 6400.