2023-24 Annual Wage Review – Decision Issued
On 3 June 2024, the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling for the 2023-24 Annual Wage Review.
The FWC has awarded an increase of 3.75% for Modern Award base rates of pay which will take effect in ALL Modern Awards from the first full pay period commencing (ppc) on or after 1 July 2024. The increase will flow on proportionately to junior and training rates of pay.
In settling on a more modest increase than the last two years, the FWC took into account the incoming Stage 3 tax cuts which are anticipated to ease pressure on lower income households.
The increase will bring the National Minimum Wage (NMW) to $915.90 per week ($24.10 per hour) as of ppc 1 July 2024, up from $882.80 per week ($23.23 per hour) currently. The NMW only applies to employees not captured by a Modern Award or enterprise agreement. Approx. 70 Modern Awards contain an entry-level classification attaching a rate lower than the NMW and this will continue to be the case from ppc 1 July 2024. The FWC has previously determined how these Modern Awards which contain a rate falling below NMW will be amended (if at all) in future – catch-up with our news post here.
Allowances contained in each Modern Award, which are calculated as a percentage of the ‘standard rate’, will increase following the 3.75% per week increase to the ‘standard rate’ they are calculated from. Furthermore, expense-related allowances, specific to each Modern Award, will increase as necessary subject to the formal determinations issued by the FWC.
This year’s Annual Wage Review Decision can be viewed on the FWC’s website here.
When will updated Modern Awards be available?
We will endeavour to have updated Modern Awards available to ES Subscribers as early as possible in the week beginning 24 June 2024. It will be necessary to hold a subscription which will be valid as at 1 July 2024 in order to access updated wages and allowances operative from ppc 1 July 2024.
Further review of female-dominated industries
The Minimum Wage Panel has undertaken to immediately commence a review, actioned on its own initiative, designed to examine the impact of “gender undervaluation” in certain industries as follows:
“We have also determined to establish a program for the timely resolution of gender undervaluation issues arising in respect of certain modern awards. A gender equity research project which was undertaken following the decision in last year’s Review has now been completed, and this has permitted us to identify priority areas for attention. Modern awards and classifications applicable to early childhood education and care workers, disability home care workers and other social and community services workers, dental assistants, medical technicians, psychologists, other health professionals and pharmacists will be the subject of Commission-initiated proceedings to examine and address gender undervaluation. These proceedings will commence shortly after the issue of this decision and we intend that they will be completed by the time of next year’s Review, which will then move on to the consideration of other gender undervaluation issues.“
Subscribers who have questions about this information are invited to contact the Employer Services advice line on (07) 3220 3500.