Posted July 6, 2020
On 19 June 2020, the Expert Panel of the Fair Work Commission (FWC) handed down its Annual Wage Review 2019-20 Decision.
The FWC determined that award minimum wages and the National Minimum Wage will be increased by 1.75%.
This year, the way in which the wage increase will be applied is different from previous years due to the exceptional economic effect of the COVID-19 pandemic. Usually, the wage increase is effective from 1 July 2020 onwards for all awards, but this year the FWC has delayed the operative date for industries that have been affected by COVID-19.
Hair and Beauty Industry Award 2010
The hair and beauty industry was considered to be in group 3, the category of industries most severely affected by COVID-19. As a result, the minimum wage increases for the Hair and Beauty Industry Award 2010 will not come into effect until the first full pay period that starts on or after 1 February 2021.
HABA will distribute an updated wage table that sets out the new wage rates and allowances to members after the FWC has published the final determinations amending the award rates.
Does the wage increase apply to award/agreement-free juniors, trainees and apprentices?
Juniors, apprentices, and trainees are generally covered under the award and therefore the rates of pay will increase at the same time as the adult rates.
What about award/agreement free employees?
Most employees in the hair and beauty industry are covered by the award. A National Minimum Wage Order applies to adult employees who are not covered by an award or enterprise agreement. The National Minimum Wage Order includes:
- A National Minimum Wage of $753.80 per week or $19.84 per hour; and
- A casual loading of 25%.
Adult employees who are award/agreement free must not be paid less than the National Minimum Wage.
What about non-national system employers in Western Australia?
On 26 June 2020, the Western Australian Industrial Relations Commission (WAIRC) handed down a state wage decision for employers that are not national system employers under the Fair Work Act 2009.
The WAIRC decided to increase the State Minimum Wage and award rates by the same amount as that decided by the FWC: 1.75%.
Similarly to the FWC decision, the WAIRC decided to delay the increase until later in the financial year. The new rates of pay in WA will apply from the first pay period after 1 January 2021.
Advice or assistance
Our advisers are ready to answer your questions. For advice on this topic, or any other workplace relations matter, please call the HABA Advice Line on 02 9221 9911.
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