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Fair Work rules on minimum wage increase: Here’s what it means for you
Australia’s lowest paid workers will get a $13 a week pay bump following the Fair Work Commission’s latest announcement of the minimum award for workers.

Fair Work rules on minimum wage increase: Here’s what it means for you
Australia’s lowest paid workers will get a $13 a week pay bump following the Fair Work Commission’s latest announcement of the minimum award for workers.

Australia’s national minimum wage has increased to by 1.75 per cent, with workers now earning a minimum $19.84 an hour or $750 per week.
The pay rise will apply for human services and frontline workers from 1 July; construction and manufacturing workers from 1 November; and arts, retail and hospitality, tourism and aviation sector workers from 1 February 2021.
The decision will impact 2.2 million working Australians.
The recent increase falls short of the 3 per cent increase to the minimum wage last year, and the 4 per cent increase to the ACTU, while the Australian Chamber of Commerce was proposing no increase to minimum wages.
In a recorded message, a commission spokesperson spoke to the fall in the national economy, as Australia enters what is likely to be its first technical recession in almost three decades.
“The shock to the labour market has been unprecedented. The unemployment rate has increased, the number of hours work has fallen and there has been a substantial increase in underemployment,” he said.
The moderate increase in the minimum wage and the delayed rollout for several awards has been described as “disappointing” by ACTU secretary Sally McManus.
“It is clear in the decision that this panel of experts recognise that cutting wages in the middle of this crisis would be a disaster for working people and the economy, and they have rejected the arguments put by some employers to effectively cut wages by freezing the minimum wage,” she said.
“Many of the workers who will benefit directly from this decision are the essential workers who have been getting us through the pandemic. They deserve to have their wages protected.”
Ms McManus also highlighted that 60 per cent of Australia’s gross domestic product is made up of consumer spending, and increasing the minimum wage will likely help the national economy.
“The most important thing the country needs is people with money to spend and the confidence to spend it. This is how the hospitality, retail and tourism industries will get back on their feet.”
“Just about every cent a worker on minimum wages receives, they spend. This is money circulating to local businesses. It is the fastest and most effective form of stimulus we can have,” she concluded.
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