By Stephanie Oliver

The Fair Work Commission (the FWC) has once again handed down their decision on what increase will be afforded to the national minimum wage (the NMW) and to minimum wage rates in modern awards (Award Rates).

On 3 June 2024, the FWC announced that the NMW and Award Rates would increase by 3.75%; meaning that the new NMW will be $24.10 per hour or $915.90 per week (for a full-time employee working 38 hours per week).

When providing their decision, the FWC confirmed that a primary consideration which led to only a 3.75% increase being awarded (noting last year’s increase was 5.75%) was the cost-of-living pressures modern-award-reliant employees were continuing to experience coupled with the current inflation rate.

Approximately 20% of the Australian workforce will be directly impacted by the increase.

Noting that the increase has taken effect on 1 July 2024, employers should undergo a review of current rates of pay for their employees now, if they have not already, to ensure they meet the new minimums to avoid any risk of underpayments (noting that the minimum rate for superannuation has also increased from 11% to 11.5% on 1 July 2024).

Full details of the changes can be found at the FAIR WORK COMMISSION.