Annual Wage Review Decision – 5.75% Increase to Award Wages

June 4, 2023

Employers should hold onto your hats, open your wallets, and check your bank overdraft.

The Fair Work Commission Annual Wage Review Panel has increased award minimum wages by 5.75 per cent from 1 July 2023.

The National Minimum Wage (NMW) has been aligned to a higher benchmark award wage and adjusted to $882.80 per week or $23.23 per hour effective from 1 July 2023. The increase to the NMW represents a $70.20 increase per week to the minimum wage.

Note these increases are in addition to the increase to superannuation contributions of 0.5% to 11% effective from 1 July 2023.

The Fair Work Commission stated the current inflation rate weighed heavily on the decision to adjust the minimum award rates.

Employers must ensure they pay no less than these minimum rates but may absorb the increases within higher ‘over-award’ rates currently paid to employees, unless enterprise agreements or individual contracts of employment require the increases to be passed on to the employee.

View the Fair Work Commission Summary Decision

Contact us for further advice on how the decision will impact your organisation.

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