Changes to minimum wages

Changes to the minimum wages you need to know

Main awards pertaining to our industry Federal system

• Horticultural Award 2020: www.fwc.gov.au/documents/documents/ BY AMBER ATKINSON modern_awards/award/ma000028/default.htm COMMUNICATIONS & POLICY OFFICER, State system VEGETABLESWA • Fruit Picking and Packing Award: www.wairc.wa.gov.au/en/FullAwards Broadly speaking, wage theft occurs when employers deliberately • Vegetable growers — award free as there is no specific award covering this sector: www.commerce.wa.gov.au/sites/default/files/atoms/files/ award_free_employees_minimum_pay_rates_and_entitlements_ summary_-_1020.pdf do not pay employees their lawful entitlements, including superannuation, award rates, penalty rates, leave and other entitlements. ‘Deliberate’ does not simply mean that the employer chose to not pay what an employee was entitled to — it also covers instances when an employer does not apply the terms of an industrial instrument that pertains to the workplace, when they should have known it applied. Recent changes to Federal and Western Australian (WA) awards have seen an increase in the minimum wage making it vital to understand the differences Federal changes Changes commenced: November 1, 2020 On the June 19, 2020, the Fair Work Commission announced a 1.75 per cent increase to minimum wages. The increase applies to employees that are on the minimum pay rate which will mean more than 2.2 million Australians will get an increase. The minimum wage in Australia is now $19.84 per hour ($753.80 for a 38-hour week), this will mean a $13 increase per week. Most employees however are covered by an award. An award sets the minimum wage for an employee based on the industry they work in and what role they have within that industry. You can work out what you need to pay your employees It is important to understand what laws are applicable to your businessstructure. The WAIRC decision granted a 1.75 per cent per week increase in the state minimum wage and WA award rates of pay from January 1, 2021. Due to the COVID-19 pandemic, the minimum pay rates for award free employees and all pay rates in WA awards remained unchanged from 1 July 2020. Wageline has issued new 2020 versions of its WA award summaries, which include the rates of pay that apply from 1 July 2020 and the rates of pay that apply from 1 January 2021, as well as enhanced information on long service leave and employment record keeping obligations. This information is only relevant to employers and employees in the WA state industrial relations system — sole traders, unincorporated partnerships, unincorporated trusts and some incorporated or not for profit organisations. between the federal and state pay according to your industry award. Where to find more information: rates, awards and entitlements. Firstly, it’s important to understand The increase doesn’t affect employees who already get paid more than their www.commerce.wa.gov.au/labourrelations what laws are applicable to your business structure. new minimum wage. Where to find more information: MORE INFORMATION • Visit the Wageline website for a guide to The Federal changes outlined relate www.fairwork.gov.au who is in the state system: to incorporated trusts and PTY LTD companies. Stare changes (WA) www.commerce.wa.gov.au/labourrelations/wa-award-summaries For sole traders, partnerships and unincorporated trusts, please refer to the state-based changes. Changes commencing: January 1, 2021 In June 2020, the WA Industrial • WA award summaries: www.commerce.wa.gov.au/labourrelations/wa-award-summaries Relations Commission (WAIRC) issued the 2020 State Wage Case decision.