1.75% increase to minimum wages

The Fair Work Commission has announced a 1.75% increase to minimum wages

This will apply to all award wages.

Increases to awards will start on 3 different dates for different groups of awards. See When will my award increase for information on when the awards will increase.

Most employees are covered by an award. If you’re not sure which award applies, use Find my award.

For anyone not covered by an award or an agreement, the new national minimum wage will be $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020.

You can read the detailed decisionexternal-icon.png on the Fair Work Commission’s website.

Who does the increase apply to?

The 1.75% increase applies to the national minimum wage and will apply to minimum rates in awards in 3 stages. See When will my award increase for information on when the awards will increase.

If you’re covered by a registered agreement, you should check it to see whether this increase affects you.

The increase doesn’t affect employees who already get paid more than their new minimum wage.

Interaction with the JobKeeper payment

The new 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. See JobKeeper and the Annual Wage Review 2020 on our JobKeeper wage subsidy scheme page for more information.

What happens next?

The Commission will issue draft determinations and orders about how this decision affects awards. It will then update the pay rates in each award.

When will my award increase?

The increase to awards will happen in 3 groups:

Group 1 Awards – from 1 July 2020

  • Frontline Health Care & Social Assistance Workers
  • Teachers and Child Care
  • Other Essential Services

Group 2 Awards – from 1 November 2020

  • Construction
  • Manufacturing
  • A range of other industries

Group 3 Awards – from 1 February 2021

  • Accommodation and Food Services
  • Arts and Recreation Services
  • Aviation
  • Retail
  • Tourism
See the FWA website for a complete list of awards in each group or call the Omnis Group’s Business Accountants in Perth on 08 9380 3555.
Source: Welcome to the Fair Work Ombudsman website. (2020).