Minimum Wage Increase

The Fair Work Commission has announced that minimum wages will increase by 1.75%. However, this increase will be applied across three different dates depending on the impact of the Coronavirus pandemic on the business’s industry sector.

In completing the Annual Wage Review, the Commission determined that those industries least affected by the Coronavirus pandemic would see the increase first, and those businesses most affected would not need to increase wages until early 2021.

Broadly, the groupings are:

✅ 𝗚𝗿𝗼𝘂𝗽 𝟭: Frontline Health Care and Social Assistance Workers, Teachers and Child Care, and other essential services (those industries and sectors less affected by the pandemic) and the National Minimum Wage.

✅ 𝗚𝗿𝗼𝘂𝗽 𝟮: Construction, Manufacturing and a range of other industries (industry sectors which were adversely impacted by the pandemic, but not to the same extent as group 3).

✅ 𝗚𝗿𝗼𝘂𝗽 𝟯: Accommodation and Food Services, Arts and Recreation Services, Aviation, Retail, and Tourism (those industries most adversely affected by the pandemic).

Those in Group 1 will increase minimum wages from the first full pay period after 1 July 2020. Those in Group 2 will apply the increase from the first full pay period after 1 November 2020, and those in Group 3 will apply the increase from the first full pay period after 1 February 2021.

If you need assistance reviewing your wages, contact us or visit the Fair Work Ombudsman’s website at www.fwo.gov.au.