FWC Annual Wage Review Decision 2020-2021
The Fair Work Commission’s Expert Panel has awarded a 2.5% increase to the national minimum wage and the minimum wages in Modern Awards.
Accordingly, all Modern Award minimum weekly wages will be increased by 2.5%. Similar to the approach used last year, the increase will apply to different Modern Awards from different dates as a continued attempt to accommodate certain industries who continue to be significantly impacted by the adverse effects of the COVID-19 Pandemic.
In arriving at their decision, the Fair Work Commission confirmed that they considered the upcoming increase in the superannuation employer contribution rate from 9.5% to 10.0% on 1 July 2021, the markedly better economic conditions and tax-transfer changes. They were of the view that these considerations weighed in favour of a higher increase in comparison to the 1.75% minimum wage increase awarded last year.
1 July 2021: National Minimum Wage and the Majority of Modern Awards
The national minimum wage will be increased to $772.60 per week or $20.33 per hour. This constitutes an increase of $18.80 per week to the weekly rate or 49 cents per hour to the hourly rate.
The Panel was satisfied that there were exceptional circumstances that justified providing later operative dates for increases to Modern Awards within the Fitness Industry, Retail Trade Sector, Accommodation and Food Services Sector, Aviation and Tourism Sector and the Arts and Recreation Services Sectors.
However, the majority of Modern Awards are required to apply the 2.5% increase from the first full pay period commencing on or after 1 July 2021, unless specified below. This may result in some Modern Awards receiving two wage increases within a 12 month period. However, the Panel was not satisfied that this was justification for delaying an increase as they had the benefit of a delayed operative date arising from last year’s decision.
1 September 2021: General Retail Industry Award 2020
The minimum wage increase will apply to the General Retail Industry Award 2020 from the first full pay period commencing on or after 1 September 2021.
1 November 2021:
The minimum wage increase for the following Modern Awards will operate from the first full pay period commencing on or after 1 November 2021:
- 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 increase applies to minimum wages for all employees, including junior employees, trainees and apprentices, employees with disability, and to piece rates. Weekly wages will be rounded to the nearest 10 cents.
If an Enterprise Agreement applies to an employee and the employee would otherwise be covered by a Modern Award, then the employee’s base rate of pay under the Enterprise Agreement must not be less than the base rate of pay that would be payable to the employee under the Modern Award.
If an Enterprise Agreement applies to an employee and the employee is not covered by a Modern Award, then the employee’s base rate of pay under the Enterprise Agreement must not be less than the national minimum wage.
If no Enterprise Agreement or Modern Award applies to an employee, then the employee cannot be paid less than the national minimum wage.
The Australian Government did not propose an increase to the minimum wage. The wage submissions from the major industrial bodies were as follows:-
- ACCI, AiGroup and ABI proposed an increase of 1.1%; and
- ACTU suggested a 3.5% increase.
Mapien Modern Award Supply Service
If you are currently a subscriber to the Mapien Modern Award Supply Service, the wage sheets for your applicable Modern Award will be updated in line with the increase to take effect from the first full pay period on or after the dates highlighted above.
You will receive an email confirming when these are available via our online service.
Interested to learn more?
If you would like more information on the impact that the minimum wage increase might have to your organisation, please contact us and one of our Workplace Strategists will be in touch within 24 hours.