Federal Wage Increase From July 1
The Fair Work Commission (FWC) announced an increase of 5.75 per cent in modern award minimum wage rates from 1 July 2023.
The Fair Work Commission (FWC) announced an increase of 5.75 per cent in modern award minimum wage rates.
The announcement followed the FWC’s Annual Wage Review 2023 and affects the national minimum wage and minimum award pay rates in Australia.
These changes are to take effect from the first pay period on or after 1 July 2023.
Employees covered by a modern award have to be paid the minimum pay rates in their award or agreement, including penalty rates and allowances.
For employers with staff on salaries or receiving above modern award payments, this increase may be able to be absorbed into the above modern award payment, depending on the wording of the employment contract and ensuring the better-off overall test is met.
Advice should be sought on the absorption of the increase into salaries and above-award payments prior to doing so.
Superannuation is legislated to increase from 10.5 per cent to 11 per cent from 1 July 2023. Under the legislation, superannuation is to progressively increase by 0.5 per cent until it reaches 12 per cent on 1 July 2025.
Do you have questions about the federal minimum wage increase? Contact us today!