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”.
