Increases to Minimum Wages – What Employers Need to Know

Who does the increase apply to?

• The 1.75% increase applies to the national minimum wage and will apply to minimum rates in all Awards
• The increase doesn’t affect employees who already get paid more than their new minimum wage
• If you employ staff under a registered agreement, you will need to check to see whether the increase impacts these employees
• For employees who are not covered by an Award or agreement, the new national minimum wage is $753.80 per week or $19.84 per hour. This applies from the first full pay period starting on or after 1 July 2020.

Impact on the JobKeeper payment

The new minimum wage also applies to any work an employee performs while they’re in the JobKeeper scheme, if they get their pay rate from an Award or the national minimum wage.

Under the JobKeeper scheme, each fortnight employers need to pay their employees the higher of:

• the amount of the JobKeeper payment ($1500 before tax), or
• their usual pay for the work they perform during the fortnight (including any paid leave or public holiday pay).

When calculating the amount an employee in the JobKeeper scheme needs to be paid, the employee’s usual pay for work performed in the fortnight could be affected by the minimum wage increase.

Make sure you check your relevant Award for details. You can find your Award on the Fair Work Ombudsman website.

When will the increase come into effect?

Increases to awards will start on 3 different dates for different groups of awards.