The Fair Work Commission handed down its annual wage review decision on Friday 2 June 2023.
Minimum Wage Increase
From the first full pay period on or after 1 July 2023, the National Minimum Wage will be adjusted. The new minimum wage will be $23.23 per hour, up from $21.38 per hour, an increase of 8.65%.
Modern Award Increase
In addition to the National Minimum Wage increase, Modern Awards will also be adjusted. From the first full pay period on or after 1 July 2023, the minimum wage in all Modern Awards will be increased by 5.75%.
We strongly advise you to review the relevant Modern Awards applicable to your business and ensure that you are meeting the new minimum rates and any increases to allowances and other entitlements.
If you pay above minimum award rates, pay annualised salaries or ‘flat rates’ of pay you should still ensure that these payments will satisfy your obligations under the relevant modern award once the increases apply.
Employers who pay in accordance with an enterprise agreement must ensure that the base rates of pay under their agreement are no lower than the increased relevant modern award rates of pay, particularly if the agreement was made several years ago.
From 1 July 2023 the Superannuation Guarantee percentage will also increase, to 11%, up from 10.5%.
Employers should update payroll systems with the increases.
Employees should be made aware of any adjustments to their wage rates resulting from changes to the National Minimum Wage, the Modern Awards and the Superannuation Guarantee.
Please don’t hesitate to reach out to HR On Demand:
- If you would like assistance with updating employment contracts, letters varying employment contracts or letters advising of salary increases
- If you have recently completed salary benchmarking and would like the updated Modern Award rates
- If you have concerns about the impact of the salary increase on your business