Minimum wage set to rise by $18.80 a week

Australia’s lowest-paid workers will receive an $18.80-a-week wage increase.

The Fair Work Commission revealed on Wednesday the national minimum wage will rise 2.5 per cent to $772.60 per week or $20.33 an hour.

Sectors still under pressure from coronavirus restrictions will have the increase delayed beyond July 1.

More than two million people are on award rates of minimum pay for their industry, while almost 200,000 receive the national base wage.

The Morrison government warned against a major increase, arguing it could dampen employment in small business during the coronavirus pandemic.

But unions pushed for a 3.5 per cent increase, which would have seen minimum wage workers receive an extra $26 a week.

The Australian Industry Group urged the commission to limit its increase to 1.1 per cent, or $8.29 a week.

The national minimum wage increased by 1.75 per cent to $753.80 a week, or $19.84 an hour, after last year’s review but the rise was delayed at least three months for most workers.

AUSTRALIA’S NATIONAL MINIMUM WAGE RISE

HOW MUCH IS IT?

• National minimum wage will be $772.60 a week. That’s a 2.5 per cent or $18.80 a week increase
• The increase is higher than last year’s 1.75 per cent and recognises the economic recovery from COVID-19 has been better than expected

WHEN DOES IT KICK IN?

• The pay rise will start on July 1 for most sectors
• On November 1, it will apply to the accommodation and food services sector (with the exception of the Fast Food Industry Award 2010), as well as the aviation, fitness and tourism awards
• The decision will apply to people under the General Retail Industry Award 2020 from September 1

HOW MANY PEOPLE ARE AFFECTED?

• Fair Work Commission decision directly affects over 2.3 million workers
• It affects employees paid the minimum wage and those workers whose wages are set by a modern award minimum wage
• The decision indirectly affects many more workers, particularly those paid close to the minimum wage or whose pay is set by a collective agreement linked to annual wage review

WHAT WAS SAID ABOUT THIS YEAR’S DECISION?

• “The Australian economy has recovered to a greater extent and more quickly than anticipated.” Fair Work Commission
• “The pay rise today has been hard-fought for. It may well have been higher were it not for the fact Australia’s government, the Morrison government, refused to lift a finger in arguing for higher rates of pay.” Labor frontbencher Tony Burke
• “We are very disappointed they have decided to delay those increases, in particular for retail workers ... who worked all the way through the pandemic.” ACTU secretary Sally McManus
• “This is a bitter pill to swallow for the approximately 230,000 small and family-owned businesses which dominate these particular sectors.” Australian Chamber of Commerce and Industry acting CEO Jenny Lambert