The Fair Work Commission has handed down the 2024 Annual Wage Review providing a 3.75% increase to Award minimum wages as well as the National Minimum Wage.
The Commission stated a key driver behind the determined increment is the cost-of-living pressures experienced by employees. It also stated the increase is consistent with the forecast wages growth across the economy in 2024.
Following are the key points from the Decision.
The National Minimum Wage has been increased by 3.75% lifting the weekly rate to $915.90 – equating to $24.10 per hour.
The National Minimum Wage applies to businesses who are in the federal system with employees who are not covered by an Award or Enterprise Agreement. This is likely to be a very small number of employers. Where an Award applies with an appropriate classification and wage rate then that wage rate will apply.
Minimum Award wages across all classifications have also been increased by 3.75%.
The changes will take affect from the first full pay period commencing on or after 1 July 2024.
Approximately 21% of employees are paid at the Award rate in Australia.
Junior rates in Awards, often based on a percentage of the adult rate, will also increase as a result of this decision.
Employers should check the new Award rates when they become available to ensure they are paying their employees no less than the Award rate. This includes employers covered by an Enterprise Agreement. Employees covered by an Enterprise Agreement cannot be paid less than the comparable classification in the applicable Award.
Secondly, some employers have based their Enterprise Agreement wage rates at a set percentage above the Award rate – i.e. always paying 10% above the applicable Award rate. These employers will need to adjust their Enterprise Agreement wage rates even though they are above the Award.
Where an Award covered employee, not covered by an Enterprise Agreement, is paid in excess of the new applicable minimum Award rate, the employer is not obliged to pass on the above increases.
Employers should review their Award in relation to potential flow on increases to allowances.
Employers should contact Hunter Employee Relations if they require assistance with wages rates and conditions relating to their workplace.
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Kind Regards
Michael Schmidt
M 0438 129 728
www.hunteremployeerelations.com.au
Industrial Relations - Employment Law - Workplace Performance
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