New pay rates for transport businesses are now in effect

pay rates for transport

Earlier this year, the Fair Work Commission determined that the minimum wage rates provided for under Modern Awards would increase by 1.75%.

The timing of the wages increases would be staggered across awards to reflect the effects of the pandemic on the different industries.

The new pay rates, with allowances, loadings and penalties for transport businesses came into effect on November 1, said the Queensland Trucking Association in a communique to its members at the weekend.

 The following Moderns Awards, common within transport businesses, that are affected are:  

  • Road Transport and Distribution Award 2020
  • Road Transport (Long Distance Operations) Award 2020
  • Clerks – Private Sector Award 2020
  • Manufacturing and Associated Industries and Occupations Award 2020
  • Miscellaneous Award 2020
  • Waste Management Award 2020
  • Passenger Vehicle Transportation Award 2020

As with all wage-related Fair Work decisions, said the QTA, the requirement to start paying the new higher wage only applies once the next pay period begins.

Some of the main points to note about the November 1 increase are:

  • If you pay on a weekly basis for work performed Monday to Sunday, then the new rate was effective from Monday November 2, 2020 and payment for hours worked up until Sunday, November 1, are at the 2019-2020 rate.
  • If you pay on a fortnightly basis for work performed Wednesday to Tuesday, and the current period ends on November 10, then the new rate is effective from November 11 and payment for hours worked up until November 10 are at the 2019-2020 rate.

Where employers rely on another industrial instrument, such as an Enterprise Agreement, increases may also be required on or November 1, depending on the wording of the agreement, reminded the QTA.

“All businesses are recommended to review the new awards rates closely, as some increases do not work out as just an additional 1.75% on top of the current amount, for example, penalty rates for weekend work increase more than 1.75% as those rates are proportional to the minimum wage rate,” said the QTA.

“For example, a 200% penalty rate for Sunday work results in an overall 3% increase. Similarly, not all allowances increase by 1.75% as their increase can be determined by actual CPI increases, e.g. Travelling Allowances.”

Current versions of the Modern Awards are available from the Fair Work Commission website and the Fair Work Ombudsman publish pay guides around the time of rate increases.

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