The Fair Work Commission announced changes to the minimum wage and minimum award rates at the start of the financial year – however with so much going on at that time of year (not to mention a global Pandemic!) now is a good time to make sure you’re up to date with the changes and when they come into effect for your workforce.
Changes to Minimum Wage
In June 2020, the Fair Work Commission announced a 1.75% increase to minimum wages, with new rates coming into effect in 3 stages for different groups of awards. The second stage of increases will take effect on the 1 November 2020.
Some of the Awards that are included in the November rate increases are:
- Animal Care and Veterinary Services Award,
- Clerks Private Sector Award,
- Food, Beverage and Tobacco Manufacturing Award,
- Manufacturing and Associated Industries and Occupations Award,
- Road Transport and Distribution Award,
- Storage Services and Wholesale Award
Does this affect me?
These changes taking effect from 1 November specifically set the new minimum pay requirements for certain awards. If your employees fall under any of these awards, you will need to review pay rates and make any pay increases required to meet these new minimums by the first full pay period on or after 1 November 2020.
Even if the award applicable to your business is not listed above, all awards have had pay increases which will take effect either from 1 July 2020, 1 November 2020 or 1 February 2021.
Many employers believe that they’re paying their employees well above the award, however as the rates increase each year, it is easy to fall behind the increases and unwittingly be underpaying employees. Check out our previous blog on underpaying employees for more information.
Do I need to do anything?
To ensure that you are not at risk of underpaying employees, we recommend reviewing your pay rates against the new minimum pay rates set out in the award that applies to your business.
It is common for employees to take on added responsibilities over time, however this can mean their role moves into a higher classification under the same Award. The difference in pay may be as little as $0.20 per hour or could be as much as $16.00 per hour which in either case, over the weeks and years can add up to a significant cost to employers in backpay claims.
Our team of HR Specialists is experienced in reviewing pay rates and providing guidance on correct rates for each unique role in a business. We review the roles that employees perform to ensure that they are classified correctly under the relevant award, and can support business owners and managers in managing any potential underpayments.
If you’re looking for assistance in correctly classifying your employees under an Award, or reviewing pay rates, don’t hesitate to get in touch with our team, via the chat box here or calling us on 08 6150 0043.
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