The Fair Work Commission has released its Annual Wage Review 2023-24 Decision, impacting millions of Australian workers. The decision, handed down last week, will see a 3.75% increase in both the National Minimum Wage and minimum wage rates under modern awards.
Key Points:
- 3.75 per cent increase to National Minimum Wage and modern award minimum rates
- New National Minimum Wage: $24.10 per hour or $915.90 per week
- Changes effective from the first full pay period on or after July 1, 2024
Impact on Modern Awards
The 3.75 per cent increase will apply to all modern awards, including the Vehicle Repair, Services and Retail Award 2020 and the Clerks Private Sector Award 2020. This adjustment will affect minimum wage rates across various industries.
Employers should note that the minimum wage increase may be fully absorbed into existing over-award rates of pay. The increase will also proportionately affect junior employees, apprentices, trainees, employees with disabilities, and casual workers.
National Minimum Wage Adjustment
For employees not covered by a modern award or enterprise agreement, the National Minimum Wage will increase as follows:
| CURRENT RATE |
NEW RATE (FROM JULY 1, 2024) |
| $23.23/hour |
$24.10/hour |
| $882.80/week |
$915.90/week |
Industry Reaction
The Tasmanian Automobile Chamber of Commerce (TACC) has expressed concerns about the decision. We note that this above-inflation increase, coupled with poor productivity, increasing regulatory costs from recent government changes, and a 0.5 per cent increase to the Superannuation Guarantee, may exacerbate cost-of-living pressures and adversely impact businesses.
What’s Next for Employers?
VACC will be updating their Wages Guides to reflect these changes. Updated guides will be emailed to members and uploaded to the VACC website (www.vacc.com.au) by July 1, 2024, once the Fair Work Commission issues formal determinations varying the modern awards.
Employers seeking further information or clarification on how these changes affect their business can contact the VACC Workplace Relations team at 03 9829 1123 or ir@vacc.com.au.
As the July 1 implementation date approaches, employers are advised to review their payroll systems and ensure compliance with the new minimum wage rates.