Full Decision of Annual Wage Review June 2020-21

https://www.fwc.gov.au/awards-agreements/minimum-wages-conditions/annual-wage-reviews/annual-wage-review-2020-21/decisions

17 June 2021

2020-2021 National Wage Adjustment Increase Decision

Our Summary of the Decision

The Panel of the Fair Work Commission determined that it is appropriate to increase the National Minimum Wage , NMW, Having regard to the proposed NMW and the other relevant considerations, the Panel also considered that it is appropriate to adjust modern award minimum wages.

The Panel also acknowledged that awarding an increase which is less than increases in prices and living costs would amount to a real wage cut. Such an outcome would mean that many award-reliant employees, particularly low-paid employees, would be less able to meet their needs. For some households such an outcome would lead to further disadvantage and may place them at greater risk of moving into poverty.

The Panel acknowledged that an operative date of 1 July 2021 will mean that businesses covered by some of these modern awards will face two minimum wage increases within a 12 month period. But those businesses have had the benefit of the delayed operative date arising from the 2019–20 Review. The timing issue is, of itself, not sufficient to warrant a finding of exceptional circumstances. A strong case must be made out in order to warrant the deferral of a variation determination arising from a Review. The Panel considered the submissions advanced in respect of these modern awards and the factors of the Decision and was not persuaded that such a case has been made out in respect of the remaining modern awards.

Consistent with the position taken in past Review decisions, the Panel has taken the 0.5 percentage point increase in the Superannuation Guarantee rate into account in determining the level of increase in minimum wages in this Review, but has not applied a direct, quantifiable, discount to the minimum wage increase.

Taken overall, the change in circumstances-the markedly better economic environment, the scheduled SG increase and the tax-transfer changes-weigh in favour of a higher increase than was awarded in last year’s Review.

 

 

The Increase National Minimum Wage

The factors the Panel are required to take into account have led it to award an increase of 2.5 per cent. The NMW will be $772.60 per week or $20.33 per hour. The hourly rate has been calculated by dividing the weekly rate by 38, on the basis of the 38-hour week for a full-time employee. This constitutes an increase of $18.80 per week to the weekly rate or 49 cents per hour to the hourly rate.

Modern Awards Increase

The proposed NMW and the relevant statutory considerations led the Panel to increase modern award minimum wages by 2.5 per cent.

All Award increase operative dates are 1 July 2021 except for the awards listed with alternative operative dates as set out below in this document as listed to take effect from 1 September 2021 or 1 November 2021.

The timing of the adjustments

While a NMW order must come into operation on 1 July in the next financial year, the effect of some or all of its components may be delayed in ‘exceptional circumstances.

The Panel was satisfied that there are exceptional circumstances justifying the variation determinations in respect of the following award.

The operative date of variation for the following award is 1 September 2021 for the

  • General Retail Industry Award 2020

The variation determinations in respect of the following modern awards and modern enterprise awards will come into operation on 1 November 2021:

  • Air Pilots Award 2020
  • Aircraft Cabin Crew Award 2020
  • Airline Operations – Ground Staff Award 2020
  • Airport Employees Award 2020
  • Airservices Australia Enterprise Award 2016
  • Alpine Resorts Award 2020
  • Amusement, Events and Recreation Award 2020
  • Dry Cleaning and Laundry Industry Award 2020
  • Fitness Industry Award 2020
  • Hair and Beauty Industry Award 2010
  • Hospitality Industry (General) Award 2020
  • Live Performance Award 2020
  • Mannequins and Models Award 2020
  • Marine Tourism and Charter Vessels Award 2020
  • Nursery Award 2020
  • Racing Clubs Events Award 2020
  • Racing Industry Ground Maintenance Award 2020

 

  • Registered and Licensed Clubs Award 2020
  • Restaurant Industry Award 2020
  • Sporting Organisations Award 2020
  • Travelling Shows Award 2020
  • Wine Industry Award 2020.

Accommodation and food services sector (with the exception of the Fast Food Industry Award 2010 which takes effect form 1 July 2021) and the Aviation and Tourism Awards come into operation on 1 November 2021.

**Adjusted Award Rates and Pay Guides will be available from our website once they have been finalised. The timing of the Pay Guides is not in our hands and is likely to be just prior to the date of operation based on past experiences.

 

Yours faithfully

IRAS

Luke McCarthy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IRAS PTYLTD PO Box 298 The Entrance NSW 2261. Phone 0243344176 email info@iras.com.au Website: iras.com.au

  Full Decision of Annual Wage Review June 2020-21 https://www.fwc.gov.au/awards-agreements/minimum-wages-conditions/annual-wage-reviews/annual-wage-review-2020-21/decisions 17 June 2021 2020-2021 National Wage Adjustment Increase Decision Our Summary of the Decision The Panel of the Fair Work Commission determined that it is appropriate to increase the National Minimum Wage , NMW, Having regard to the proposed NMW and the other relevant considerations, […]