FAIR WORK COMMISSION ORDERS 3.75% RISE IN AWARD RATES (NATIONAL MINIMUM WAGE)

The Fair Work Commission (FWC) expert panel has today approved a 3.75% increase in all Award Rates and the National Minimum Wage.

This increase will apply from the first full pay period starting on or after 1 July 2024. This means if your weekly pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.

Please contact us if you have any queries on how this increase specifically impacts your business.

The decision will lift the National Minimum Wage from $882.80 to $915.90 a week and from $23.23 to $24.10 an hour. 

The FWC rebuffed the ACTU's bid for an immediate additional 4% for workers in highly-feminised industries, instead committing to a timetable to address the issue over the next 12 months. 

FWC President and panel head Adam Hatcher said cost of living pressures provided the primary consideration for the panel's deliberations on the minimum wage and award rates. 

It had taken into account the Stage 3 tax cuts and Federal Budget cost-of-living measures in its decision. 

Justice Hatcher said this morning that the Commission will soon initiate proceedings to "examine and address" gender undervaluation in 5 highly-feminised awards. 

The awards apply to early childhood education and care workers, disability care workers and other social and community services workers, dental assistants, medical technicians, psychologists and other health professionals, and pharmacists. 

The Commission will address further awards subject to gender undervaluation after it completes the initial process, which is to be finalised within 12 months. 

Justice Hatcher said there had been insufficient time since the Commission released its research on the subject in April to provide the parties "a full opportunity" to "adduce evidence and make submissions" and ensure a fair process. 

The ACTU sought an increase for workers in highly-feminised industries of 9%, comprising the 5% it sought across all award rates and an additional 4%. 

In last year's annual wage review ruling, Justice Hatcher said that future cases would need to address gender-based pay equity. 

He said 12 months ago that the panel identified "significant issues concerning the potential gender undervaluation of work and modern award minimum wage rates applied to female dominated industries and occupations". 

Justice Hatcher said at the time that the "scope and timing of the present review has prevented these gender equality issues being addressed to finality". 

"However, the imperative of the amendments made by the Parliament to the Fair Work Act last year concerning gender equality is that these issues must be resolved in future reviews or other commission proceedings," he said in the 2023 ruling. 

The ACTU made its bid for an extra 4% after the president invited parties to respond to in-house research on gender-based occupational segregation conducted as part of this year's wage review. 

Today's decision follows the Albanese Government making submissions asking for the third successive year that the panel ensure that the real wages of low-paid workers "do not go backwards".

ACCI (Australian Chamber of Commerce and Industry) supported an increase of 2% and AiG (Australian Industry Group) 2.8%.

The panel – Justice Hatcher, Vice President Ingrid Asbury, deputy presidents Bernadette O'Neill and Peter Hampton and lay members Adele Labine-Romain, Marian Baird and Mark Cully – made a unanimous decision. 

The above-inflation increase in today's ruling means the Government's push to ensure workers don't go backwards has been achieved, before tax cuts, super increases and other transfer payments are considered.