Annual Wage Review 2020-21 – 2.5% increase

The FairWork Commission (FWC) has completed their Annual Wage Review 2020-2021 and have come to a decision to increase the National Minimum wage by 2.5%. The increase, also applied to Award wages, will directly affect 2.2 million Australians. This will mean that the National Minimum Wage will be raised to $772.60 per week, or $20.33 per hour.

The FWC stated that the wage increase is due notably is the economic recovery that Australia has seen since the COVID-19 lockdowns of 2020. The FWC made mention of the possible negative impacts which may affect the recovering economy including domestic outbreaks, disruptions to other major economies and Australia's overseas trade, as well as the vaccine rollout plans. However, they believe that the increased wage will not adversely impact the economic recovery. The FWC also took in to account the 0.5% increase in Superannuation Guarantee Contribution which comes into effect on 1 July 2021.

What this means for your business: Depending on which Award your business operates under will determine when the increase will occur. The increase will come into effect in three stages across the latter half of 2021. If you pay more than 2.5% above Award rates, you will not be affected by these changes.

Timing of award changes: The first Awards to change will be effective from 1st July 2021 including Fast Food Industry, Commercial Sales, Construction, Mining, and Manufacturing Awards.

The second stage from 1st September 2021 will apply to General Retail Industry Award 2020.

The final stage will be 1st November 2021 and will increase the remaining 22 other Awards which are:

  • Air Pilots Award 2020

  • Aircraft Cabin Crew Award 2020

  • Airline Operations – Ground Staff Award 2020

  • Airport Employees Award 2020

  • Airservices Australia Enterprise Award 2016

  • Alpine Resorts Award 2020

  • Amusement, Events and Recreation Award 2020

  • Dry Cleaning and Laundry Industry Award 2020

  • Fitness Industry Award 2020

  • Hair and Beauty Industry Award 2010

  • Hospitality Industry (General) Award 2020

  • Live Performance Award 2020

  • Mannequins and Models Award 2020

  • Marine Tourism and Charter Vessels Award 2020

  • Nursery Award 2020

  • Racing Clubs Events Award 2020

  • Racing Industry Ground Maintenance Award 2020

  • Registered and Licensed Clubs Award 2020

  • Restaurant Industry Award 2020

  • Sporting Organisations Award 2020

  • Travelling Shows Award 2020

  • Wine Industry Award 2020.

The final order, incorporating any additional changes, will be published on the FWC website prior to 1 July 2021. To find out more about the Fair Work Commissions Annual Wage Review 2020-2021 decision, you can visit their website or click here.