The national minimum wage increased to $19.84 per hour
Australia’s minimum wage increased to $19.84 per hour as of July 1, 2020, benefiting over 2.2 million workers, with a staggered implementation across different industry groups due to the impact of COVID-19
1.75% increase
The 1.75% wage increase translates to a weekly income of $753.80 for a full-time 38-hour week.
Mixed sentiments
Some employers were not happy with the decision. The commission is firm maintaining the current wages will result in poverty among Australians.
Three Wage-increase Schedules
Group 1 workers see the wage increase immediately, Group 2 starts receiving it from November 2020, and Group 3 sees an increase from February 2021, addressing varying impacts of the pandemic,
An increase of minimum wage across Australia would benefit more than 2.2 million workers after Fair Work Commission’s decision in regards to annual wage analysis.
From $19.49 per hour last year, the current minimum wage has been increased to $19.84 as of 1 July 2020 adding up to $13.30 on weekly income. The decision was made in consideration of the effects brought about by COVID-19 and decline of the country’s economic activity.
Despite of employers’ mixed sentiments, the commission argued that not increasing the minimum wage could gradually result to poverty, affecting millions of households in Australia.
One point seventy-five percent was the percentage increase on National Minimum Wage. A full time 38 hour week would then now equate to a weekly income of $753.80.
Employees should not expect to immediately receive the increased wages.
The Fair Work Commission will deliver a staggered approached based on three “Modern Awards” groups.
However, not all employees are expected to immediately receive the increased wage all at the same time. Three groups of “Modern Awards” have been identified by Fair Work Commission to deliver a staggered approach of the said implementation:
Group 1
Includes those who belong to the industry of healthcare, social assistance, child care workers, teachers, and other essential services. The implementation will take effect on 1 July 2020 henceforth.
Group 2
Wage increase will take effect from 1 November 2020. Workers from the industry of construction, manufacturing or other range of industries who have been adversely affected by the pandemic.
Group 3
Finally, employees who have been mostly affected by COVID 19 such as those in the industries of food services, recreation, aviation, retail trade, tourism and accommodation are referred to as Group 3 whose salary increase will take effect on 1 February 2021.
