Employers will be aware the Fair Work Commission Annual Wage Review Panel decided to increase all modern award wages by 5.75% effective from the first full pay period on or immediately after 1 July 2023. Employees paid fortnightly wages on the minimum award rate that commenced Sunday 2nd or Monday 3rd July will expect to see the full increase in their bank accounts on the pay day following the end of pay cycle i.e., the week of 17th July 2023.
Most employers will have adjusted their payroll systems to incorporate the increases. If not, this is friendly reminder to do so now before the end of the pay period. The Fair Work Commission has published the updated awards and Pay guides providing hourly rates for all ordinary, casual, overtime, junior, apprentice, shift loadings, weekend and public holiday penalty rates are available to view and download from the Fair Work Ombudsman.
As advised in the initial notification of the Annual Wage Review Decision, the 5.75% increase can be absorbed or set off against the wages paid to your employees as long as the individual employee’s wages are no less than the adjusted award minimum rate for the job classification relevant to your employees. This applies to employees engaged under individual contracts of employment and those covered by an enterprise agreement.
If you have any questions on the application of the new award rates to your business and employees please contact us.