5 June 2024
Following the Fair Commission’s 2024 Annual Wage Review in accordance with the Fair Work Act 2009 (Cth), the Modern Award and National Minimum Wage for employees will increase by 3.75%. This decision has been made in consideration of current higher living costs and inflation, that disproportionately impact modern-award reliant employees.
These changes, effective from the 1st July 2024, will see the National Minimum Wage increase by 3.75% to $915.90 per week (based on a 38 hour week) or to a $24.10 hourly wage. This change will impact approximately 20% of Australian workers, covered by 121 award wages (equivalent to 2.6 million workers), effectively increasing current minimum wage by $33 per week.
The Modern Award minimum wages in real terms (accounting for inflation) remained lower than they were 5 years ago, yet the Fair Work Commission deemed it not appropriate to increase Awards by any amount significantly above the inflation rate due to the current level of labour productivity. This decision was also influenced by future stage 3 tax cuts and the Budget’s cost of living measures that modern-award-reliant workers will shortly receive and benefit from.
The review also set a program for the resolution of gender undervaluation issues in certain modern awards, identifying priority areas for attention.
For more information on the 2024 Annual Wage Review, please contact us below.
