Business

How the new increase to the minimum wage will affect you

The Australian Fair Work Commission has decided to introduce a $13 increase to the minimum wage per week (which equates to a 1.75% rise). This means the minimum hourly rate has now risen to $19.84, cementing Australia’s national minimum wage as one of the highest in the world. The effect will become active in July 2020. So, if this is the first time you’re hearing of the new change, here are some of the ways it could affect you.

More income for workers

A higher minimum wage means employees and workers will now have a slightly higher monthly income (approximately $50 per month). The increase will assist employees in low-income professions to better meet their short-term financial needs.

Businesses need to budget

For larger businesses with a lot of staff on their payrolls, the increase will need to be budgeted for accordingly. However, Sally McManus from the Australian Council of Trade Unions has argued that the wage increase doesn’t go far enough in protecting vulnerable workers. However, she did concede that an increase was better than no increase or cutting wages.

Who will get it first?

If you’re working in healthcare, childcare, education or any other type of essential service, you can expect to see the change reflected in your pay as of July 1. However, tourism, retail and hospitality workers will be forced to wait until around February next year before the change kicks in for them. There was a concern that bringing the change in across the entire economy on July 1 would have affected employment opportunities and job creation.

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