On Friday, 19 June the Fair Work Commission’s Expert Panel (Panel) handed down its Annual Wage Review Decision (Decision) for 2019-20.
The QHA can advise that a wage increase of 1.75% will apply to all ADULT modern award wages and to the National Minimum Wage (NMW).
The FWC has determined that the date for increases to modern awards will be delayed for some modern awards due to the economic impact of the COVID-19 pandemic. All awards have been grouped according to the FWC’s position on when the increase should take effect.
Therefore, depending on what modern award/s apply at your workplace, the date of effect will differ:
|Award Group||Operative Date|
|Group 1 Awards||1 July 2020|
|Group 2 Awards||1 November 2020|
|Group 3 Awards||1 February 2021|
Hospitality Industry (General) Award 2020
For the Hospitality Industry (General) Award 2020, a group 3 award, the 1.75% increase will take effect from the first full pay period commencing on or after 1 February 2021.
Other group 3 awards that the QHA produces wage sheets for are:
- Hair and Beauty Industry Award 2010
- Live Performance Award 2010
- Registered and Licensed Clubs Award 2010
- Restaurant Industry Award 2020
- Vehicle Repair, Services and Retail Award 2020
Group 2 awards
For other modern award wage sheets that the QHA prepares, the following modern award rates will increase from the first full pay period commencing on or after 1 November 2020:
- Clerks—Private Sector Award 2010
- Joinery and Building Trades Award 2010
- Manufacturing and Associated Industries and Occupations Award 2020
- Miscellaneous Award 2020*)
- Plumbing and Fire Sprinklers Award 2010
* relevant for the national training wage.
National Minimum Wage
For those employees who are not covered by a modern award or agreement covered employees:
- The NMW employees will increase to $753.80 per week for a full time employee or $19.84 per hour.
- The increase represents a weekly increase of $13.00 per week or 35 cents per hour to the NMW.
The above NMW increase will affect all employers from the first full pay period commencing on or after 1 July 2020.
What is the Pay Cycle?
With regard to the operative date, where an employer’s pay period commences prior to the date the increase will have effect, for example, on 30 June (using the example for the NMW date of 1 July 2020), the increase provided in the above Decision will not affect wages until the next pay cycle.
This is due to the pay cycle commencing prior to 1 July – the Decision states it applies to a full pay cycle that commences (ie the first day of the cycle) either on, or after, 1 July.
Basically, if your pay cycle starts on Sunday, 1 July or after that date, the above wage increase will apply from that cycle.
New Wages Sheets
The QHA will prepare its wage rates and allowances guides for the modern awards listed in this article and will notify members as they are available.
Please note that the Panel’s decision provides for a percentage based wage increase, however, new wage sheets are not produced by the Panel.
As your industry association, the QHA will undertake those calculations however given the delay with the increases, the updated wage sheets will be made available closer to the relevant operative dates.