NATIONAL WAGE CASE 2023 IMPLICATIONS
Further to our last Workplace Relations News regarding 5.75% National Minimum Wage Increase – see below.
The 5.75% National Minimum Wage (NMW) increase for the 2023/2024 year is lower than the 7% increase sought by Employee groups, but represents a significant increase on the 3.5 – 4%, sought by Employer groups.
NMW increases over the last 7 years
| Year | % increases over previous year | Minimum wage per hour |
| 2017 | 3.3% | $18.29 |
| 2018 | 3.5% | $18.93 |
| 2019 | 3% | $19.49 |
| 2020 | 1.75% | $19.84 * |
| 2021 | 2.5% | $20.33 |
| 2022 | 5.2% | $21.38 |
| 2023 | 5.75% | $23.23 ** |
* Lower increase due to the COVID pandemic
** The 2023 decision also changed the comparison base rate used for the Minimum Wage calculations from C14 to C13, which resulted in an effective 8.6% increase for those Minimum Wage covered Employees.
The FWC said that considering the negligible proportion of the workforce to which the NMW applies, this outcome will not have discernible macro-economic effects.
What this means is that the Minimum Wage Increase is now based on the C13 rate.
What do Employers need to do?
Employers should ensure that Employees, who are paid strictly in accordance with a modern Award or the NMW, receive the appropriate pay increase by the effective date.
If you pay above minimum Award rates, pay annualised Salaries, or rolled up Rates of pay – you should still ensure that these payments will satisfy your obligations under the relevant modern Award once the increases apply.
Employers who use direct Contracts, enterprise Agreements and/or individual flexibility Agreements – must take time to review the wage rates, contained within these instruments. This is because the National Employment Standards (NES), which apply to all Employees, provide for Modern Award rates to be the basis for all wage rates, regardless of the instruments.
Please contact Tania on how exactly this will operate in your business, as it is important to get it right.
Future Australian wage reviews to address gender equality
The FWC says resolving gender equality issues for award-reliant workers is now firmly on the agenda after identifying ‘significant issues’ in this year’s annual wage review.
The FWC will soon begin a research project ‘to identify occupations and industries in which there is potential gender pay inequity and gender evaluation of work and qualifications.’
5.75% NATIONAL MINIMUM WAGE INCREASE
The Fair Work Commission (FWC) has, this morning, handed down their decision that the national minimum wage will be increased by 5.75%.
The increases will take effect from the first full pay period on or after 1 July 2023.
Example:
Simply put – the first full pay period, is the first pay period in July 2023 in which no wages are paid for work performed in June 2023.
So, if for example – the pay period was from Monday 26 June to Sunday 2 July, the rate of pay for that whole period would not increase.
The next pay period from Monday 3 July to Sunday 9 July would be at the new rates.
QUESTIONS?
DISCUSS HOW THESE CHANGES SPECIFICALLY IMPACT YOUR BUSINESS.
WE LOOK FORWARD TO CONTINUING TO WORK TOGETHER, SUPPORTING YOUR BUSINESS INTO THE FUTURE.