1.75% increase on 1 November 2020 for Group 2 Modern Awards
The Full Bench of the Fair Work Commission this year determined an increase to the National Minimum Wage of 1.75%, and for the same increase to be applied to the minimum rates in each Modern Award. As Aitken Legal previously reported, the increases to Award rates of pay are to take place on a staged basis.
Group 1 Awards received the increase on 1 July 2020 which included: Frontline health care and social assistance workers; Teachers & child care workers; and Other essential services. Group 2 and 3 Awards will receive the 1.75% increase as follows:
1 November 2020 – Group 2 Awards
- A range of other industries
1 February 2021 – Group 3 Awards
- Accommodation & food services
- Arts & recreational services
- Retail trade
Modern Awards (Groupings and Operative Dates) can be accessed and reviewed here in Fair Work Commission’s Summary Decision (from page 14).
Employers should ensure that where the Modern Award rate is being paid, the increase is passed on to their Award-covered employees in accordance with their Award and the applicable timeline.
It is also essential that Employers review pay rates for employees currently receiving over-Award payments, or engaged under Enterprise Agreements, to ensure that they do not underpay their employees when compared against the revised award rates, or under the remuneration provisions of an Enterprise Agreement.
Contact Aitken Legal for any enquiry about the wage increase and its application to remuneration arrangements, including through Modern Awards and Enterprise Agreements.
Disclaimer: The information contained this article is general and intended as a guide only. Professional advice should be sought before applying any of the information to particular circumstances. While every reasonable care has been taken in the preparation of this update, Aitken Legal does not accept liability for any errors it may contain. Liability limited by a scheme approved under professional standards legislation.