Fair Work Commission Annual Wage Review
Each year, the Fair Work Commission (FWC) conducts a wage review of minimum and award wages. On 2 June 2023, the FWC handed down its Annual Wage Review 2022–23. In making its decision, the FWC cited the current combination of economic factors including low unemployment, falling “real” wages and high inflation rates as issues which had significant weight in its decision. Further regard was had to issues impacting the Living Cost Index which takes into consideration mortgage interest rates which are currently on the rise.
What are the Changes?
The outcome of the Annual Wage Review 2022–23 is that, effective 1 July 2023:
The National Minimum Wage will increase from $21.38 to $23.23 per hour (or an increase from $812.60 to $882.80 per week for a 38-hour week) which means it will now be aligned with a higher minimum award classification (from the C14 to the C13 classification); and
Modern award minimum wages will increase by 5.75%.
It is important employers review the wages they currently pay their employees to ensure they have applied the latest wage increases where applicable. It is also a good opportunity to review employment agreements, applicable awards and classifications to ensure compliance.
If you require assistance with employee wages within your workplace, Adams & Partners Employment Law Team can help you. Contact us on (02) 4721 6200.
Written by Amelia Hatton.