The Fair Work Commission has announced this year’s Annual Wage Review Decision
National Minimum Wage Increase
Effective from 1 July 2023, the National Minimum Wage will increase by 5.75%.
In addition to the percentage increase, the Commission has also increased the wage level that the minimum wage had traditionally been based on under certain Modern Awards.
Together these two changes mean that those employees in receipt of the minimum wage will receive the following rates before tax:
- $23.23 per hour, and
- $882.80 per week (based on a 38-hour week for a full-time employee).
This increase will see an extra $70.20 ‘in the pocket’ each week.
Modern Award Rate Increase
Similar to the National Minimum Wage increase, all 121 Modern Awards will also increase by 5.75% on 1 July 2023.
The Fair Work Commission will release updated Pay Guides in line with the effective date.
Modern Awards can be complex. If you need help determining if a Modern Award applies to your employees or you understand what Awards apply but you need assistance understanding the specific Classification they fall under, contact the Allan Hall Human Resources Team on 1300 675 393.
It is important to note that if you have non-award covered employees receiving payment which is above the national minimum wage, you are not obliged to increase their salary/wages. However, with the current Australian job market being so competitive and a shortage of potential employees available, it may be worth undertaking a salary benchmarking exercise and considering if an increase would be suitable during your next salary review.
At Allan Hall HR we can provide you with Salary Benchmarking reports, based on data from a range of current and reputable reporting sources. If you want to know what the market is doing, contact us to gain access to salary insights based on a range of factors such as industry, turnover, headcount and location!
Changes to Superannuation from 1 July 2023
As a reminder, the Super Guarantee rate will rise from 1 July 2023. This will rise by another half per cent, taking the minimum super guarantee from 10.5% to 11%.
The Super Guarantee rate will continue to rise by an additional 0.5% at the start of each financial year until it reaches 12% in 2025.
- Check if your employees are covered by the national minimum wage or a Modern Award.
- Should a Modern Award apply to your employees, ensure you have correctly classified your employees under the relevant award, and confirm the minimum rates of pay that will apply.
- Review the current rates of pay for your employees and, if required, adjust their pay rates from their first full pay period starting on or after 1 July 2023.
- Ensure you start applying the new Superannuation Guarantee rate of 11% from 1 July 2023.
Our experienced HR Consultants at Allan Hall HR are available to answer your queries regarding the wage rise and assist you with clarification of awards, salary benchmarking or any other employee-related matters. Feel free to get in touch with us today on 1300 675 393.