When Will the 20/21 Minimum Wage Increase Apply to My Business?
In mid-June Fair Work Australia announced that we were going to see a 1.75% increase to the national minimum wage, a broad range of industry awards, and in some cases, the legal parameters of registered agreements. This increase sees the national minimum wage reach $19.84 per hour, working out to $753.80 per week.
Unlike previous years where all changes came into effect on July 1st of the relevant financial year, this financial year’s changes have been scheduled to be rolled out in three stages. The first stage still took place on July 1st, a second stage is scheduled for November 1st, and a third is scheduled for February 1st 2021.
Given the scheduling change, it’s natural that some businesses will find themselves unclear as to when the change will come into effect for their industry. As a recruitment agency that specialises in providing recruitment and staffing solutions to businesses across the Light & Heavy Industrial, FMCG & Manufacturing, Rail, Mining, Warehousing & Logistics, Civil & Commercial Construction and Engineering sectors, it’s our job to help our clients make informed decisions about their permanent and casual staffing.
Read on to gain clarity as to when the changes to the national minimum wage, a range of industry awards, and some registered agreements come into effect for your business and your employees.
The July 1st Increase
July 1st saw the first round, with adjustments to 21 industry awards coming into effect. Primarily, this round of changes has seen the 1.75% increase come into effect for healthcare and social assistance workers, teachers and childcare, along with some other essential services. But what some businesses might have missed is that the increase is not the only change being made.
Some awards are undergoing changes that don’t relate directly to the 1.75% increase and are already in effect currently. Namely for our area of specialisation as a provider of recruitment and staffing solutions, the Building and Construction Award, the Joinery Award, and the Mobile Crane Award.
Many of the changes to these awards relate to the allowance provided to employees while working away from home, the addition of a morning shift, and other adjustments made to simplify payroll matters. The specific timing of these changes perhaps reflecting the pressures some of these industries have faced in staying operational throughout the COVID-19 pandemic.
For a more detailed breakdown of the changes made to these awards, look to Fair Work Australia’s Modern Award Review: Changes to some awards from July 1.
The November 1st Increase
The second round of increases is by far the largest. It includes adjustments to the conditions of 73 distinct awards. This particular round will have the largest effect on the industries that we specialise in providing recruitment and staffing solutions to.
The Construction, Manufacturing, Mining, Rail and FMCG sectors are amongst a wide range of industries that will all see the awards that regulate wages and work conditions for their employees undergo changes. Again, these changes are not limited to the 1.75% pay increase, but also relate to workplace conditions, allowances for travel, parental leave and other aspects of work legislated under the relevant awards.
An exhaustive list of the awards that will see changes come into effect on November 1st can be found here: When will my award increase? And specific features of the award relevant to you or your employees can be found using the Pay and Conditions Tool.
The February 1st Increase
The February 1st, 2021 increase sees a further 27 awards adjusted up by 1.75%. This adjustment predominantly affects the Accommodation and Food Services, Aviation, Arts and Recreation, Retail and Tourism industries, and as such doesn’t have a great deal to do with the sectors in which we specialise. But we anticipate that a number of our clients will be eager to make adjustments to their recruitment and staffing strategy in preparation for any knock-on effects that stem from these changes; particularly those in the Manufacturing and FMCG sectors.
Get in touch with Zoom
Getting informed is the first step, but the next steps are all about what you do with that information. Get in touch with the team at Zoom Recruitment to learn more about what we can do as a recruitment solutions and temporary staffing provider to help your business account for these changes to the minimum wage, industry awards and registered agreements.
Reach out by calling 1300 762 208 or filling out a contact form today!
