The decision of the Fair Work Commission (FWC) Expert Panel for annual wage reviews has increased the national minimum wage and the minimum rates of pay in modern awards by 2.5%.
Similar to last year, the increase will apply to different awards from different dates, in a continued attempt to accommodate industries who continue to be impacted by the effects of the COVID-19 pandemic.
The 2.5% wage increase for the federal Local Government Industry Award 2020 (Award) will come into effect from the first full pay period on or after 1 July 2021.
The national minimum wage will increase to $772.60 per week, or $20.33 per hour.
A summary of the decision can be found here.
Historic FWC wage increases are set out below for comparison.
| 1 November 2020 | 1.75% |
| 1 July 2019 | 3% |
| 1 July 2018 | 3.5% |
| 1 July 2017 | 3.3% |
| 1 July 2016 | 2.4% |
Applying the Increase
This increase will need to be passed on by Local Governments that:
- pay the minimum wage rates in the Award, and
- have federal enterprise agreements that incorporate increases to modern award wage rates.
If you apply the Award but pay wage 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 wage 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 that have a federal enterprise agreement must ensure their enterprise agreement base wage rates are not less than the Award minimum wage rates.
Wage Schedules
The Award (available here) now contains Schedules B and C which summarise hourly rates of pay (including penalty and overtime rates) and allowances.
Local Governments operating under the Western Australian Industrial Relations system will be informed when the decision is available for the 2021 State Wage Case General Order.
If you have any questions about this alert, please email WALGA Employee Relations or call 1300 366 956.
