02 Jun 2023
Libby Pallot, Walter MacCallum, Anthony Massaro, Rima Newman, Ben Tallboys, Abbey Burns, Kelly Ralph, Natasha Sim, Ashleigh Warren, Morgan Smithe, Harrison Gray & Emily Tang
On Friday 2 June 2023, the Fair Work Commission handed down its Annual Wage Review 2022–23 decision, announcing a 5.75% increase to modern award minimum wages.
President Justice Adam Thatcher of the Fair Work Commission noted the decision will impact the wages of about a quarter of the Australian employee workforce. In making the decision, the Commission placed significant weight on current economic factors such as the current high inflation rate and low unemployment rates.
The outcome of the decision is that as at 1 July 2023:
- The National Minimum Wage will now be aligned with a higher minimum award classification (from the C14 to the C13 classification) and increase from $21.38 to $23.23 per hour (or an increase from $812.60 to $882.80 per week for a 38-hour week).
- Modern award minimum wages will increase by 5.75%.
A copy of the full decision is available here.
Employers will need to ensure that their employees covered by awards are paid at least the minimum wage in their award, even if an enterprise agreement applies to them.
The rise to the minimum modern award wage is in addition to the 15% minimum wage increase under the work value case for some employees working in aged care. See our article here.
It is also a timely reminder for employers that the superannuation guarantee rate also increases on 1 July 2023 from 10.5% to 11%.
How we can help?
Please contact Workplace Relations, Employment and Safety team advice regarding the Fair Work Commission Annual Wage Review or any other workplace relations matter.
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