Minimum wage increase 1st July 2024

The Fair Work Commission has increased the minimum and award wages by 3.75 per cent.

The decision will see the Australian National Minimum wage to be $915.90 per week, based on a full-time, 38-hour week, or $24.10 per hour.

These increases will take effect from the first full pay period on or after 1 July 2024.

How can employers ensure compliance?

• For award-covered employees, check the new award rates and ensure that employees are paid at least the new minimum award rates.
• For employees who are paid above minimum award rates and/or annualised salaries with offset clauses, ensure that wages are sufficient to cover all minimum entitlements, considering the increased rates.
• For organisations covered by an Enterprise Agreement, the increase will only apply if the Agreement specifically refers to the Annual Wage Review, or if the base rates have fallen below the equivalent Modern Award rates as a result of the increase. In this case, the rates must be brought up to at least the same as the rates in the Modern Awards.

Please note that there is not an obligation to pass on the wage increase to employees that are paid above the minimum wage rates as the increase may be absorbed without changes to wages. However, you must check this carefully to ensure all wage rates are still compliant as significant penalties exist for getting wage rates wrong.

Changes to superannuation contributions

The minimum superannuation guarantee will also increase on 1 July 2024, to 11.5%

Employers must ensure to pass on this increase to all eligible employees.

Conclusion

Several changes to workplace relations have been made in 2024. Employers must be aware of the changes and ensure compliance to avoid penalties.

If you require advice on any of the changes or need assistance implementing the changes, contact our office today and speak with an experienced consultant.