The Fair Work Commission (FWC) plays a crucial role in ensuring fairness and equity in Australia’s workplace relations. One of its significant responsibilities is conducting Annual Wage Reviews to determine the national minimum wage and modern award wages. These reviews are pivotal in maintaining a balance between the interests of employers, employees, and the broader economy.
The FWC conducts Annual Wage Reviews to determine adjustments to the national minimum wage and modern award wages. The process involves extensive consultations with stakeholders, including employers, employees, unions, and various industry representatives. These consultations aim to gather evidence and arguments regarding the economic conditions, cost of living, and other relevant factors affecting wage levels.
The closing date for initial submissions has passed on the 28th of March. There is then a deadline for lodging reply submissions on the 29th of April and consultations in Sydney on the 22nd of May.
At the end of the review, the Expert Panel issues its decision and the FWC publish:
- determinations that change the minimum wages in modern awards; and
- a national minimum wage order for employees who are not covered by an agreement or award.
The new minimum wages will then apply from the first full pay period from the 1st of July 2024.
The Fair Work Ombudsman (FWO) will issue updated pay guides to assist employers in applying the new award rates.
The Annual Wage Reviews often spark debates and controversies, reflecting the diverse interests at stake. Employers tend to advocate for moderate wage increases to maintain competitiveness and profitability, while employees and unions tend to push for higher wage rises to address cost-of-living pressures and income inequality.
Balancing the competing interests of these groups, while considering the broader economic implications poses significant challenges for the FWC.
Notably, the Albanese Labor Government has lodged a submission recommending that the FWC ensures that real wages do not go backwards relative to inflation/cost of living pressures.
In the lead up to the 2024 Annual Wage Review decision, we recommend that businesses subscribe to receive updates from the FWC. We also recommend that they keep an eye on the FWO website for updates on pay guides in the lead up to EOFY.
In the meantime, please get in touch if you would like to know more about how the Annual Wage Review affects you and your business.
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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