The Fair Work Commission Annual Wage Review Panel has decided to increase the National Minimum Wage (NMW) and all award minimum wages by 3.75 per cent from 1 July 2024.
Subject to the final order, the decision means the National Minimum Wage (NMW) increases to $915.90 per week or $24.10 per hour effective from 1 July 2024. The special NMW orders for juniors, training and employees with a disability that are award free have been increased by the same percentage. Minimum award rates also increase from the first pay period on or immediately after 1 July 2024.
The increase occurs in conjunction with the increase to superannuation contributions of 0.5% to 11.5% effective from 1 July 2024.
The Panel stated there was not a sound basis at this time to award wage increases that are significantly above the CPI, (3.6%) which remains higher than the RBA’s target range. The Panel conceded productivity growth was highly uncertain, in fact it has not increased over the past 4 years.
Next Steps
Employers must ensure they pay no less than these minimum rates but may absorb the increases within higher ‘over-award’ and ‘over-agreement’ rates currently paid to employees unless enterprise agreements or individual contracts of employment require the increases to be passed on to the employee.
Further advice
Further guidance on the implementing the new award rates applicable to employees of Maguire Legal clients will be provided as soon as the relevant orders and determinations are published.
If you are not currently a client of Maguire Legal, please contact us for further advice on how the decision will impact your organisation.
View the Fair Work Commission Annual Wage Review DecisionAnnouncement.pdf