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Minimum Wage Increase for 2020

March 11, 2020

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Each year the government issues an update to the Minimum Wage Order with the new minimum wage rates for the year. This sets out minimum rates for persons paid by the hour, the day, the week and the fortnight. These time categories represent the basis upon which an employee is paid, which may not necessarily match the frequency with which he or she is paid.

From 1 April 2020 the rates are:

Rate

Adult worker

Starting-out workers & Trainees

Hourly

$18.90

$15.12

Daily (8-hour day)

$151.20

$120.96

Weekly (40-hour week)

$756

$604.80

Fortnightly (80-hour fortnight)

$1,512

$1,209.60

Keep in mind the basis on which you pay your employees, as stated in their employment agreements. This will affect how you work out whether you’re complying with minimum employment requirements.

Who these rates apply to

The rates apply to these categories of workers:

Type of worker

is someone who is…

Adult worker

16 years or older who is not a starting-out worker or trainee

Starting-out worker

16 or 17 years old who has not yet completed six months’ continuous employment with his or her current employer and is not involved in supervising or training other workers

OR

18 or 19 years old who is entering the workforce after six months or more on a benefit. Once the employee has completed six months’ continuous employment with a single employer, he or she will no longer be a starting-out worker, and must be paid at least the adult minimum wage rate

OR

16 to 19 years old who is required by his or her employment agreement to undertake industry training for at least 40 credits a year in order to become qualified for that employment

Trainee

20 years or over who is doing recognised industry training involving at least 60 credits a year and who is not involved in supervising or training other workers

There is no minimum wage rate for young people under the age of 16 years.

Changes

The Government has said it will abolish starting-out rates and consider changes to the training wage. However, in the meantime, those rates will continue to be at 80% of the minimum wage, $15.12 per hour. We will keep you informed of any changes.

Keep in mind

Check hours worked each pay period to make sure employees are paid at least the minimum wage appropriate to the basis upon which they are paid. (The fortnightly rate applies to salaried employees).

If you’re not already keeping good records for wages and holidays, it’s more important than ever that you do. Not only does the law require detailed wages and time records but there is an overarching requirement to keep records in sufficient detail to show compliance with minimum requirements such as minimum wage.

Talk to us if you’d like more detail about complying with minimum wage requirements.

 

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