Upcoming Increases To Minimum Wages

Minimum wages in modern awards to increase by 5.75%, national minimum wage to increase by 8.6%

6 June, 2023

The Fair Work Commission has recently announced the upcoming increase in minimum wages, effective from the first full pay period on or after 1 July 2023. According to the decision made by the Fair Work Commission, employees covered by modern awards will see a 5.75% rise in their minimum wage rates.

For those employees who are not covered by any specific awards, they will be subject to the national minimum wage. This wage will increase from its current rate of $21.38 per hour or $812.60 per week to $882.80 per week or $23.23 per hour. This increase represents an 8.6% rise. Additionally, casual employees will be entitled to a 25% loading on these amounts.

It is important to note that the increase in modern award rates will also affect employers who are covered by enterprise agreements. According to the law, these employers cannot pay a base rate of pay lower than the applicable base rate of pay specified in a modern award. Therefore, it is advisable to seek professional advice to understand how this will specifically impact your business.

In general, if employers are already paying rates higher than the relevant minimum wage, they may not be required to increase their rates of pay, unless the new minimum wages surpass the rates currently being paid.



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