But the FWC decided to stagger the increase in 3 stages, based on Covid-19 restrictions and considering those industry sectors hardest-hit and experiencing the biggest job losses.
Essential service workers such as teachers, healthcare and childcare workers will receive the increase from 1 July, benefiting immediately whilst workers in some industries such hospitality, arts, aviation, retail and tourism will have to wait until 1 February 2021.
Not surprising Unions had asked for a 4% rise while peak employer bodies including the Australian Chamber of Commerce wanted a zero increase or to fully defer the increase until 1 January 2021.
In delivering the decision, Fair Work Commission’s president Iain Ross said the economic conditions justified a lower increase than last year; they are confident that the increase will not lead to any adverse inflationary outcome or any measurable negative impact on employment.
The increase applies to awards in 3 stages in the following order:
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
- A range of other industries
Group 3 Awards – from 1 February 2021
- Accommodation and Food Services
- Arts and Recreation Services
For workers not covered by an award, the new national minimum wage will be $753.80 per week or $19.84 per hour as from the first full pay period on or after 1 July 2020.
If you are unsure about how this information applies to your specific situation we recommend you contact Signature Staff for advice.