National minimum wage increase in Australia

Minimum wage increase in Australia

The Fair Work Commission announced the national minimum wage in Australia is set to increase by $13 or 1.75% in a phased rollout commencing 1 July 2020. The increase applies to employees who are paid against the national minimum wage, including Enterprise Bargaining Agreements (EBA), or a modern award. The new minimum wage will be $753.80 a week or $19.84 an hour.

For anyone not covered by an award or EBA, the increase will commence from the first full pay period starting on or after 1 July 2020. For employees on a modern award or relevant EBA the increase will be introduced in three phases or groups based on industry sectors.

  • Phase 1 increases commence 1 July 2020 and include awards for frontline heath care and social assistance workers, teachers and childcare and other essential services.
  • Phase 2 increases commence 1 November 2020 and include the Local Government Industry Award, waste management, road transport and distribution, gardening and landscaping, and a range of professional services awards.
  • Phase 3 increases commence 1 February 2021 and include hospitality, live performance and fitness industry awards.

For a full list of awards included in each phase or group click here.

The Comensura team understands the importance of compliance with pay rates and entitlements. Where rate schedules are linked to the minimum wage and modern awards, we have begun work to update these in accordance with the phased increase. Phase 1 increases will take effect with the pay period commencing 6 July 2020. Pay rates above the minimum wage or relevant award levels will not increase as part of this change.

To manage this change, all relevant Job Categories and Titles in c.net will be updated for new orders and bookings created on or after Monday 6 July 2020. Weekly files will also be run in the lead up to and following 6 July 2020 to align existing and re-enabled bookings to the new rates. For any workers currently engaged, please contact your Business Partner to review rates and re-enable bookings on your behalf.

For further information about the impact of these changes on Comensura customers in Australia, please contact comensura.admin@comensura.com.au.

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