VRSR wage increase

25 January 2021

Automotive business owners are reminded that a wage rate increase will take effect from the first complete pay period commencing on or after 1 February 2021, and employers should make sure they pay their employees at least the minimum rates.

The 1.75 percent increase was determined by the Fair Work Commission (FWC) in Annual Wage Review 2019/20 and provided a February 2021 operative date for the Vehicle Repair, Services and Retail Award 2020 (VRSR Award).

In addition to the increase to all minimum award rates of pay based on a 38-hour week and wage-related allowances, the FWC will also adjust expense-related allowances in modern awards for the Annual Wage Review 2019/20 by referring to the latest CPI data available at that time. This means that the VRSR Award will refer to the December 2020 CPI data for the calculation of expense-related allowances, which will be published by the Australian Bureau of Statistics on 27 January 2021. It is expected the FWC will release its final determination on 29 January 2021.

To assist members, VACC will provide an IR Bulletin to members containing an accessible link to the updated VRSR Award Wages Guide once all the changes (including expense-related allowances) have been finalised.

The new wage rates will then also be accessible via the Industrial Relations section of the VACC website.

Not a VACC member yet? Contact the Membership team and find out how VACC can help you drive your business forward. 
Phone: 1300 013 341  
Email: membership@vacc.com.au