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SKY UPDATE | FAIR WORK COMMISSION ANNUAL WAGE REVIEW 2023–24 

6 June 2024 

The Fair Work Commission (FWC) has announced its decision for the Annual Wage Review 2023-24.  

The Review encompasses two primary tasks: 

  • determination of the National Minimum Wage order; and  
  • review of modern award minimum wages. 

The National Minimum Wage order sets the minimum pay rate for employees not covered by a modern award or an enterprise agreement.  

Although this directly impacts only a small segment of the workforce, its determination is an important function of the Review.  

The more substantial aspect involves reviewing the modern award minimum wages which has a direct impact for the more than 2.6m employees that are paid in accordance with these rates. 

The Review process considers numerous factors mandated by the Fair Work Act, including relative living standards, the needs of the low-paid, workforce participation, national economic performance, and gender equality.  

In undertaking the review, the FWC receives input from various stakeholders, including industry groups, employer and employee organizations, and government bodies.  

The Commission has decided to increase the National Minimum Wage and all modern award minimum wage rates by 3.75%, effective from the 1st of July 2024.  

This decision is primarily influenced by the ongoing cost-of-living pressures faced by low-paid modern-award-reliant employees despite a reduction in inflation compared to the previous year.  

However, the increase was balanced against concerns regarding the economic impact of significantly higher wage hikes.  

Whilst the labour market and business profit growth are strong overall, some sectors with high proportions of modern-award-reliant employees show less positive trends.  

Upcoming Stage 3 tax cuts and budget cost-of-living measures, which are expected to boost real household disposable incomes, were also considered along with the impact of the forthcoming increase in the Superannuation Guarantee contribution rate to 11.5%. 

In addition to the wage increase, the Commission has initiated a program to address gender undervaluation in certain modern awards.  

Following a gender equity research project, priority areas for attention have been identified. This includes modern awards for early childhood education and care workers, disability home care workers, social and community services workers, dental assistants, medical technicians, psychologists, other health professionals, and pharmacists.  

Proceedings to examine and address these issues will commence shortly and aim for completion before the next Annual Wage Review. 

The Fair Work Ombudsman will now update their Pay Guides which we anticipate will be released in late June. 

We encourage employers to access the updated Pay Guides to ensure that they continue to pay staff appropriately from the 1st of July. 

If you have any questions about the Annual Wage Review and the implications for you or your business, please get in touch.  

Sky Accountants Ballarat

Phone: 03 5332 8855

Office Address: 902 Howitt Street, Wendouree, Victoria 3355, Australia

Postal Address: PO Box 2234, Bakery Hill, Victoria 3354

Sky Accountants Gisborne & Macedon Ranges

Phone: 03 5428 1400

Office Address: 45 Hamilton Street, Gisborne, Victoria 3437, Australia

Postal Address: PO Box 270 Gisborne Victoria 3437