2020 Fair Work Commission Wage Increase
ER
Friday, June 19, 2020
Today’s decision of the Fair Work Commission (FWC) Expert Panel for annual wage reviews has increased the award minimum rates of pay by 1.75%.

In a departure from previous years and as a result of COVID-19, the FWC has divided awards into three groups based on the impact COVID-19 has had on respective industries. Each group has a different wage increase commencement date.

The 1.75% wage increase for the Local Government Industry Award 2020 (Award) will come into effect from the start of the first full pay period on or after 1 November 2020.  

A summary of the decision can be viewed here.  

This increase will need to be passed on by the Local Governments that:
  • apply the minimum rates of the Award, and
  • have federal enterprise agreements that incorporate increases to modern award rates of pay.
If you apply the Award but provide pay rates higher than the minimum Award rates, you will need to review your internal policies and procedures, and contracts of employment to determine when and how your Local Government usually provides pay increases.

Employers that have federal enterprise agreements that have set increases to pay rates and exclude Award increases will not need to apply this increase. However, as per section 206 of the Fair Work Act 2009, Local Governments must ensure their enterprise agreement base pay rates are not less than the Award minimum pay rates.


Wage Schedules

The updated Award (available here) now contains new Schedules B and C which summarise hourly rates of pay (including penalty and overtime rates) and allowances. Therefore we will no longer be producing the annual wage schedule for the Award.

Local Governments operating under the Western Australian Industrial Relations system will be informed when the decision is available for the 2020 State Wage Case General Order.



For more information please email WALGA Employee Relations or call 1300 366 956