News & Views

18th June 2021

Annual Wage Review 2020-2021 Decision Announced

On 16 June 2021, the Fair Work Commission announced the Annual Wage Review 2020-2021 Decision. The National Minimum Wage and Award rates will increase by 2.5%.

The Fair Work Commission still has to make Determinations on the application of the Decision to pay rates and allowances in each Award. NECA will publish the new pay rates for the Electrical, Electronic and Communications Contracting Award once these Determinations have been finalised by the Fair Work Commission. It is expected the Determinations will be finalised by late June.

It is recommended to treat with caution rates from other parties that are published prior to the Determination being made.

Timing of the adjustment

The increase of 2.5% is expected to apply on the first full pay period commencing on or after 1 July 2021 for the Electrical, Electronic and Communications Contracting Award 2020 and Clerks-Private Sector Award 2020 in line with the 0.5% increase to the superannuation guarantee rate.

What does this mean for employers?

Employers covered by modern awards or with employees receiving payments based on the National Minimum Wage will need to review their arrangements to ensure that employees are paid correctly.

If your Enterprise Agreement refers to either the relevant Modern Award or the Annual Wage Review in its wage setting mechanism, your rates of pay may be affected by this increase.

Alternatively, if the Annual Wage Review results in Modern Award base rates that exceed those contained in your Enterprise Agreement, you will need to review your Agreement pay rates.

Need for information?

If you would like further information regarding the Annual Wage Review and what it means for your business, please get in touch with our Workplace Relations Team at workplace.relations@neca.asn.au