The Fair Work Commission has today handed down its annual wage review decision.
The Commission will increase the National Minimum Wage and minimum wages in all modern awards by 3.75%. These increases will take effect from the first full pay period commencing on or after 1 July 2024.
The Commission also indicated that it will soon commence proceedings to address what it identified as significant issues concerning the potential gender undervaluation of work in modern award minimum wage rates applying to female-dominated industries and occupations.
Specifically, modern awards and classifications applicable to the following occupations will be the subject of Commission-initiated proceedings likely to be commenced shortly:
- early childhood education and care workers
- disability home care workers
- other social and community services workers
- dental assistants
- medical technicians
- psychologists
- other health professionals and
- pharmacists.
Size of the Increase
The decision awards workers the highest increase in decades and is naturally influenced by the unique inflationary environment currently facing businesses and workers.
Business NSW and Australian Business Industrial urged the Commission to implement a more moderate increase of 2.5% for the 2024 year, however, the Commission ultimately landed on the higher figure that will now be applied.
The Commission acknowledged that the Superannuation Guarantee contributions rate is also set to rise to 11.5% from 1 July 2024 and indicated that this had had a moderating impact on their decision, together with proposed Federal Government tax cuts that are also due to take effect on 1 July 2024.
Changes to Modern Awards
These increases will take effect from the first full pay period commencing on or after 1 July 2024 for all modern awards.
National Minimum Wage Order
These changes result in the National Minimum Wage increasing from $882.80 per week or $23.23 per hour to $915.90 per week or $24.10 per hour.
Casual award/agreement free employees are also covered by a default casual loading which remains at 25%
Gender Equality Issues
The Commission has announced it will shortly commence proceedings to review the following modern awards to assess historical gender-based undervaluation:
- Children’s Services Award 2010
- Social, Community, Home Care and Disability Services Industry Award 2010
- Health Professionals and Support Services Award 2020
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
- Pharmacy Industry Award 2020.
What do I need to do?
Employers should ensure that employees who are paid in accordance with a modern award or the National Minimum Wage receive the appropriate pay increase by the relevant, effective date.
Employers who do not pay strictly in accordance with award terms (e.g., those that pay above award rates, annualised salaries or ‘flat rates’ of pay) should ensure that their payments will still satisfy all their obligations under the relevant award/minimum wage once the increases apply.
Employers who pay in accordance with an enterprise agreement should ensure that the base rates of pay under the agreement is no lower than the increased relevant modern award rates of pay, particularly if the agreement was made several years ago.
When will the changes come into effect?
The changes come into operation from the first full pay period on or after 1 July 2024.
To view the Commission’s decision .
A summary of the decision is also available .
Further information
Online awards will be updated with the new rates progressively over the next few weeks.
If you would like to discuss the changes and their impact on you please contact one of the workplace and employment law team or call 1300 565 846.