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Changes to Modern Award Rates 2020-2021

Posted 20 Dec '20

Changes to Modern Award Rates 2020-2021

By Christina Cotter

In June 2020, the Fair Work Commission determined that the minimum wage rates provided for under Modern Awards would increase by 1.75%. The timing of the wages increases would be staggered across awards to reflect the effects of the Covid-19 pandemic on the different industries.

For anyone not covered by an award or an 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.

Who does the increase apply to?

The increase only applies to employees that get their pay rates from:

  • the National Minimum Wage
  • an award, or
  • a registered agreement (in some cases).

The new minimum wages also apply to any work an employee performs while they are in the JobKeeper scheme, if they get their pay rate from an award or the National Minimum Wage.

What do you need to do?

If you have employees on the National Minimum Wage you will need to pay them in accordance with the new minimum rates from 1 July 2020.

If you have employees on Modern Award rates, you will need to ensure that they are paid in accordance with the new minimum award rates from the first full pay period starting on or after the date set out below for each award group. The Pay Guides can be found on the Fair Work website https://www.fairwork.gov.au/pay/minimum-wages/pay-guides

When will the awards increase?

The increase to awards is happening in 3 stages.

Group 1 Awards - from 1 July 2020

  • Frontline Heath Care & Social Assistance Workers
  • Teachers and Child Care
  • Other Essential Services

Group 2 Awards - from 1 November 2020

  • Construction
  • Manufacturing
  • A range of other industries

Group 3 Awards - from 1 February 2021

  • Accommodation and Food Services
  • Arts and Recreation Services
  • Aviation
  • Retail
  • Tourism

If you have employees who are employed under awards in Group  3, you can subscribe to get email updates from Fair Work to receive notification when the new minimum rates are available in their pay tools.

See below for a complete list of awards in each group:

Group 1

The new minimum wages will start in the following awards from the first full pay period starting on or after 1 July 2020.

  • Aboriginal Community Controlled Health Services Award
  • Aged Care Award
  • Ambulance and Patient Transport Industry Award
  • Banking, Finance and Insurance Award
  • Cemetery Industry Award
  • Children’s Services Award
  • Cleaning Services Award
  • Corrections and Detention (Private Sector) Award
  • Educational Services (Schools) General Staff Award
  • Educational Services (Teachers) Award
  • Electrical Power Industry Award
  • Fire Fighting Industry Award
  • Funeral Industry Award
  • Gas Industry Award
  • Health Professionals and Support Services Award
  • Medical Practitioners Award
  • Nurses Award
  • Pharmacy Industry Award
  • Social, Community, Home Care and Disability Services Industry Award
  • State Government Agencies Award
  • Water Industry Award

    Group 2

    The new minimum wages will start in the following awards from the first full pay period starting on or after 1 November 2020.

    • Aluminium Industry Award
    • Animal Care and Veterinary Services Award
    • Aquaculture Industry Award
    • Architects Award
    • Asphalt Industry Award
    • Black Coal Mining Industry Award
    • Book Industry Award
    • Broadcasting, Recorded Entertainment and Cinemas Award
    • Building and Construction General On-site Award
    • Business Equipment Award
    • Car Parking Award
    • Cement, Lime and Quarrying Award
    • Clerks—Private Sector Award
    • Coal Export Terminals Award
    • Concrete Products Award
    • Contract Call Centres Award
    • Cotton Ginning Award
    • Dredging Industry Award
    • Educational Services (Post-Secondary Education) Award
    • Electrical, Electronic and Communications Contracting Award
    • Food, Beverage and Tobacco Manufacturing Award
    • Gardening and Landscaping Services Award
    • Graphic Arts, Printing and Publishing Award
    • Higher Education Industry-Academic Staff-Award
    • Higher Education Industry-General Staff-Award
    • Horticulture Award
    • Hydrocarbons Field Geologists Award
    • Hydrocarbons Industry (Upstream) Award
    • Joinery and Building Trades Award
    • Journalists Published Media Award
    • Labour Market Assistance Industry Award
    • Legal Services Award
    • Local Government Industry Award
    • Manufacturing and Associated Industries and Occupations Award
    • Marine Towage Award

    • Maritime Offshore Oil and Gas Award
    • Market and Social Research Award
    • Meat Industry Award
    • Mining Industry Award
    • Miscellaneous Award
    • Mobile Crane Hiring Award
    • Oil Refining and Manufacturing Award
    • Passenger Vehicle Transportation Award
    • Pastoral Award
    • Pest Control Industry Award
    • Pharmaceutical Industry Award
    • Plumbing and Fire Sprinklers Award
    • Port Authorities Award
    • Ports, Harbours and Enclosed Water Vessels Award
    • Poultry Processing Award
    • Premixed Concrete Award
    • Professional Diving Industry (Industrial) Award
    • Professional Employees Award
    • Rail Industry Award
    • Real Estate Industry Award
    • Road Transport (Long Distance Operations) Award
    • Road Transport and Distribution Award
    • Salt Industry Award
    • Seafood Processing Award
    • Seagoing Industry Award
    • Security Services Award
    • Silviculture Award
    • Stevedoring Industry Award
    • Storage Services and Wholesale Award
    • Sugar Industry Award
    • Supported Employment Services Award
    • Surveying Award
    • Telecommunications Services Award
    • Textile, Clothing, Footwear and Associated Industries Award
    • Timber Industry Award
    • Transport (Cash in Transit) Award
    • Waste Management Award
    • Wool Storage, Sampling and Testing Award

      Group 3

      The new minimum wages will start in the following awards from the first full pay period starting on or after 1 February 2021.

      • Air Pilots Award
      • Aircraft Cabin Crew Award
      • Airline Operations-Ground Staff Award
      • Airport Employees Award
      • Alpine Resorts Award
      • Amusement, Events and Recreation Award
      • Commercial Sales Award
      • Dry Cleaning and Laundry Industry Award
      • Fast Food Industry Award
      • Fitness Industry Award
      • General Retail Industry Award
      • Hair and Beauty Industry Award
      • Horse and Greyhound Training Award
      • Hospitality Industry (General) Award

      • Live Performance Award
      • Mannequins and Models Award
      • Marine Tourism and Charter Vessels Award
      • Nursery Award
      • Professional Diving Industry (Recreational) Award
      • Racing Clubs Events Award
      • Racing Industry Ground Maintenance Award
      • Registered and Licensed Clubs Award
      • Restaurant Industry Award
      • Sporting Organisations Award
      • Travelling Shows Award
      • Vehicle Repair, Services and Retail Award
      • Wine Industry Award

        Christina Cotter

        Associate




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