The Full Bench of the Fair Work Commission on Friday 2nd June handed down the Annual Wage Review decision. As most readers will be aware, this is a decision handed down annually and applies to the National Minimum Wage and to Modern Award Minimum Wage rates.
NATIONAL MINIMUM WAGE INCREASE
A 5.75% increase has been applied to most modern Awards (excluding the Aged Care and Disability Services sectors (for which higher increases will apply) from the first full pay period commencing on or after 1 July 2023.
The increase to the National Minimum Wage is higher, at 8.65%. This equates to an increase from $812.60 per week to $882.74 per week (or a new National Minimum Wage of $23.23 per hour). This increase is also effective from the first full pay period commencing on or after 1 July 2023.
The Fair Work Ombudsman will be updating the pay scales on the Fair Work website shortly (https://www.fairwork.gov.au/).
This increase does not apply to Enterprise Agreements. Be mindful however that the pay rates in an Enterprise Agreement cannot fall below the relevant Modern Award rates.
You’ll find the detailed decision at: https://www.fwc.gov.au/documents/resources/2023fwcfb3500.pdf
It is particularly important that, if you have employees who are being paid above the Award rates (but are Award covered) – either in an Employment Contract or as part of an Individual Flexibility Agreement – you ensure that the above-Award amount you are paying them is still higher than the Award minimum rate, AND (if you are “buying out” or “absorbing” Award provisions like overtime, penalty rates, etc with this overpayment) you should check that the amount the employee is being paid is more than the amount the employee would have been paid were the Award provisions to apply.
This is general information only and not legal or formal advice. As always, be sure to contact us if you require assistance in meeting your obligations as an employer.
NOTE ALSO RE. SUPERANNUATION CHANGES: Also from July, employers should be aware that the Super Guarantee Charge increases from 10.5% to 11%.