Following its 2020 Annual Wage Review, the Fair Work Commission has announced a 1.75% increase to the National Minimum Wage. With the minimum increased, all levels of Modern awards increase by the same 1.75%.
This increase is akin to a CPI indexation but the Commission takes in additional factors in coming to the percentage increase.
The timing of the increase will be staggered across three stages, depending on the Award grouping that applies. This is unusual (and due to the pandemic circumstances). Increases will start from the first full pay period on or after the dates below:
Group 1 – 1 July 2020 (for frontline healthcare and social assistance workers; teachers, and other essential services. Employees covered by the SCHADS Award and the Children’s Service Award are included in this group)
Group 2 – 1 November 2020 (for construction, manufacturing and other industries)
Group 3 – 1 February 2021 (for accommodation, food services, arts, recreation, aviation, retail and tourism)
For SCHADS employees, there is also an Equal Remuneration Order (ERO) coming in December 2020. The ERO increase is typically in the range of 1.7% to 2.6% depending on the employee’s Award level.
So, across the FY21 financial year, most staff on Award are looking at total pay increases in the range of 3.45% to 4.35%, taking in both the July and December increases.
For the SCHADS Award, this coming December is the lucky last ERO, completing the process that began in 2012. Going forward, the SCHADS will be indexed once annually, typically in July, by the Fair Wage process.