Monday, 3 June 2024

Annual Wage Increases for 2024

The Fair Work Commission (FWC) has today announced a 3.75% increase to the national minimum wage and all modern award minimum wage rates.

The new national minimum wage will be $915.90 per week or $24.10 per hour. This constitutes an increase of $33.10 per week to the weekly rate or $0.87 per hour to the hourly rate.

The increases will take effect from the first full pay period on or after 1 July 2024.

The FWC stated that the primary consideration for its determination was the cost-of-living pressures that modern-award-reliant employees continue to experience.

The FWC said that this increase was in line with forecast wages growth across the economy. Though they also acknowledged that, in real terms, modern award wages are lower than they were five years ago, even in light of the significantly higher increase of 5.75% awarded in last year’s review.

The Stage Three tax cuts and proposed cost of living measures from this years’ Budget also contributed to the FWC’s decision as these measures are expected to increase disposable income.

The FWC also found the upcoming increase to the superannuation guarantee contribution amount, which will be 11.5% from 1 July 2024, was a “moderating factor”.

Other Announcements

The FWC also announced their decision to “establish a program for the timely resolution of gender undervaluation issues”. This decision follows the conclusion of a gender equality research project that identified key problem areas, where there has been an undervaluation of certain work for gender-related reasons.

Modern awards and classifications will be subject to Commission-initiated proceedings to examine and address these issues. The highly-feminised awards are those that apply to:

  • Early childhood education and care workers;
  • Disability home care workers;
  • Other social and community service workers;
  • Dental assistants;
  • Medical technicians;
  • Psychologists;
  • Other health professionals; and
  • Pharmacists

The FWC anticipates this process will be finalised before the Annual Wage Review next year, where it will consider the gender undervaluation issues.

What Should You Do Now?

Ahead of 1 July 2024, employers should carefully review their wage arrangements and implement the necessary wage and superannuation increases.

Please contact HR Legal if you have any questions regarding your minimum pay obligations.

Annual Wage Review 2023-24 – Announcement of Decision

Annual Wage Review 2023-24 – Decision


This article was produced by HR Legal. It is intended to provide general information only in summary format on legal issues. It does not constitute legal advice, and should not be relied on as such.

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