As part of the Fair Work Commission's annual wage review, significant changes to the National Minimum Wage and minimum award wages have been announced, effective from 1 July 2024. Here’s what you need to know to ensure compliance and fair compensation for your employees.

National Minimum Wage Increase

From 1 July 2024, the National Minimum Wage will increase by 3.75%. This adjustment is part of the Fair Work Commission’s effort to keep pace with living costs and ensure fair compensation for workers. The new rates are as follows:

Weekly Wage: $915.90
Hourly Wage: $24.10

These rates will apply from the first full pay period on or after 1 July 2024. For instance, if your pay period starts on a Wednesday, the new rates will take effect from Wednesday, 3 July 2024.

Applicability

The National Minimum Wage applies to employees who are not covered by an award or registered agreement. It sets the baseline for the minimum amount an employee can be paid, ensuring that all workers receive fair compensation for their work.

Award Minimum Wage Increase

In addition to the changes in the National Minimum Wage, the Fair Work Commission has also announced a 3.75% increase in minimum award wages. Like the National Minimum Wage increase, this change will take effect from the first full pay period on or after 1 July 2024. If your weekly pay period begins on a Wednesday, the new rates will be applicable from Wednesday, 3 July 2024.

Preparing for the Changes

Employers should take the following steps to prepare for these wage increases:

Review Payroll Systems: Ensure that your payroll systems are updated to reflect the new wage rates from the specified dates.

Communicate with Employees: Inform your employees about the upcoming changes in their wages. Transparency helps in maintaining trust and morale among your workforce.

Budget Adjustments: Adjust your budgets to accommodate the increased wages. This will help in maintaining financial stability and planning for future expenses. 

Consult Awards and Agreements: Verify if your employees are covered under any specific awards or agreements and update the wages accordingly.

Conclusion

The upcoming changes to the National Minimum Wage and award minimum wages reflect the ongoing efforts to provide fair wages to employees across Australia. By staying informed and proactive, employers can ensure compliance with these changes and continue to foster a fair and productive workplace.