On 19 June 2020, the Fair Work Commission (“Commission”) decided to increase the national minimum wage (“NMW”) from 1 July 2020 by 1.75%, which sees the NMW raised to $753.80 per week ($19.84 per hour). A copy of the Commission’s decision (“Decision”) can be found here.
The increase will be applicable to modern awards, but the Commission has determined to apply a staggered approach to implement the increase across each of the awards. In order for this to happen, the Commission has organised the awards into three groups according to the severity by which industries have been affected by COVID-19. With Group 1 being less impacted and Group 3 being the most impacted on a scale.
The changes to each Group will occur as follows:
- Group 1 – 1 July 2020;
- Group 2 – 1 November 2020; and
- Group 3 – 1 February 2021.
A list of each of the Modern Awards for each group can be found between pages 115 & 122 of the Decision.
Employers and employees should be mindful of the changes, given the imminent effects.