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The minimum wage has been increased by 1.75% – here’s what you need to know

2min read

In the Annual Wage Review on Friday June 19, the Fair Work Commission made a decision to increase the minimum wage by $13 per week for all awards. While this decision was lower than the recommendations from the union, who wanted a 4% increase, this change will impact millions of Australians on minimum wage.

The Fair Work Commission has increased the minimum wage in a bid to ensure that households on minimum wage don’t fall into poverty and significant disadvantage as a result of the economic downturn.

How much was the minimum wage increased by?

The increase of 1.75% will increase the minimum wage to $753.80 per week, or an hourly rate of $19.84.

Related article: 5 Ways to help your employees improve their financial wellbeing

How does this impact employers?

All employees working in Australia are entitled to a minimum wage. Employers who have employees on minimum wage will need to ensure that they follow the new minimum wages set by the Fair Work Commission.

The increases to award wages will start on 3 different dates for different awards. The first wave will come into effect on July 1 for workers on the front line of the pandemic — such as healthcare, education, childcare and other essential services.

The second round of increases will begin at the start of November, and the final stage in February next year, when workers in tourism, hospitality and retail will have their minimum wage increased.

For anyone not covered by an award or an enterprise 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 on or after 1 July 2020

How can you ensure you’re compliant with the minimum wage?

Check the updates on the Fair Work Commission website to see how this will affect your business and industry.

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