Natasha is a leading HR expert, entrepreneur, author and sought-after media commentator for outlets such as Sunrise (Channel 7), ABC Radio and The Australian Financial Review. Natasha co-founded Employee Matters in 2011 to help Australian businesses achieve success through their people.
Fair Work have announced a 3.75% Minimum Wage Increase - Here is all you need to know.
As usual at this time of year, the Fair Work Commission has made its ruling on increases to the minimum wage and all other Award pay rates. The increase applies to anyone who is paid minimum award wages or the national minimum wage.
So what is the decision?
The national minimum wage will increase by 3.75% on 1 July to $915.90 per week or $24.10 per hour. Employers will need to ensure that their employees covered by awards are paid at least the minimum wage in their award, even if an enterprise agreement applies to them.
Although the increase will directly impact a small number of workers, approximately 20.7% of Australia's workforce (equivalent to around 2.6 million employees) are currently being paid based on minimum wage rates outlined in modern awards. Furthermore, various categories of workers will experience indirect effects from this decision, leading the Commission to project that nearly one-quarter of all Australian employees will ultimately be impacted.
The primary consideration of the Fair Work Commission in this decision was the ongoing cost-of-living pressures that modern award-reliant employees continue to experience in Australia.
Note that businesses that fail to pay wages in accordance with the national minimum wage order or requirements of a relevant Modern Award may be exposed to liability for breach of the Fair Work Act 2009 which can result in heavy penalties.
Announcement on Gender undervaluation
Off the back of today’s decision, the Fair Work Commission also announced that a programme for considering gender undervaluation issues in certain modern awards will commence shortly and is forecast to be completed by the time of next year’s review. These modern awards cover such workers as those in early childhood, disability home care and other social and community workers and dental assistants. FWC's President Justice Hatcher stated that last year’s priority in the aged care sector, which saw significant wage increases (in addition to the Annual Wage Review in 2023/2024), has permitted the Commission to identify areas of focus for 2024/2025.
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