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2020/21 Minimum wage decision - important changes for outsourced fundraising

It’s that special time of year when tax appeals are finished, and the Fair Work Commission celebrates by giving everyone a pay rise…

The minimum wage increase for 2020/21 is a little different from usual, so here is some information to help charities and fundraising agencies with their due diligence and compliance processes.

Pay increases by 1.75%

The new minimum wage is $19.84 per hour or $753.80 per week for full and part-time workers. For casual workers the minimum hourly wage is now $24.80. These represent an increase of 1.75% on the previous rates.

Timing is everything.

The unusual factor this year is that the timing of the increase is staged. For all workers not covered by an Award and who are as a result engaged on the National Employment Standards (NES); the minimum wage increases for the first full pay period starting on or after 1st July 2020.

However, most face to face and telephone fundraisers and “back office” staff are covered by either the Miscellaneous Award, the Contract Call Centre Award or the Clerks – Private Sector Award. All of these Awards will receive the increased minimum wage rate from the first pay period starting on or after 1st November 2020.

Miscellaneous Award Coverage Widened

A lot more fundraisers now seem to be covered by the Miscellaneous Award 2010 following this determination made by the Commission on 25th March 2020. This strengthens the information in this article previously published by the Fair Work Ombudsman.

You may find that some face to face agencies are still paying their workers based on the NES. If your agency does still use the NES, part of your due diligence should be to ask them on what basis they are doing this, and who has advised them that this is appropriate.

What next?

Recommended actions to take now:

  • Charities - check your due diligence checklists are up to date for the new pay rates.

  • Charities - check that all the agencies through your fundraising supply chains are applying these rates properly.

  • Charities - if your ag

ency is still paying fundraising workers based on the National Employment Standards - ask them if they have received suitable advice that this is the correct approach.

  • Agencies - update your sub-contractor due diligence checklists to incorporate the new rates.

  • Agencies - check that you have updated your pay rates for the new minimums and that your sub-contractors have done the same.

Here’s the information in more detail from the Fair Work Commission.

Fundraising Partners is available for more detail on this question. Get in touch if you'd like to know more.

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