The minimum wage will increase by $13 a week, affecting the pay packets of more than 2.2 million Australians as the nation deals with its first recession in decades.

Key points:

  • The Fair Work Commission has decided to raise the national minimum wage
  • More than 2 million workers will benefit from the decision
  • The changes come into effect from July 1 2020

The Fair Work Commission (FWC) made the decision to lift the minimum wage by 1.75 per cent on Friday morning, well down from the demands from the union movement for a 4 per cent increase.

The increase takes the minimum wage to $753.80 per week, or a $19.84 hourly rate.

In making the decision, the commission said the job market had faced an “unprecedented” shock, caused by the coronavirus pandemic, and the road to economic recovery remained “uncertain”.

The Fair Work Commission has ordered the wage increase be phased in across different sectors.

The first wave will come into effect on July 1 for workers in industries that have not been as hard-hit by the coronavirus pandemic — such as healthcare, education, childcare and other essential services.

The second round of increases will begin at the start of November, and the final stage in February next year, when workers in tourism, hospitality and retail will benefit.

For a list of the Modern Awards and their corresponding increase date, please click here