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02 June 2023

Minimum wage to increase to $882.80 per week from 1 July 2023

The Fair Work Commission has handed down its decision this morning to increase the national minimum wage as part of its wage review.

What are the minimum wage increases for 2023?

The Fair Work Commission has handed down its decision to increase the national minimum wage as part of its wage review.

The national minimum wage will increase to $882.80 per week (or $23.23 an hour) from 1 July 2023. The weekly rate is based on a 38-hour week for a full-time employee.

Additionally, minimum wages in modern awards will increase by 5.75% from 1 July 2023. This increase will operate from 1 July 2023 for all modern award minimum wages, modern enterprise award wages and State reference public sector awards.

Employees will be entitled to receive the increase from their first full pay period on or after 1 July 2023.

The increase will also apply to:

  • junior employees
  • employees to whom training arrangements apply
  • employees with a disability.

In delivering its decision, the Commission stressed that the awarded increases have taken into account the new requirements within the Fair Work Act 2009 (Cth) regarding gender equality and job security. The Commission also advised it will be undertaking a broader review over the next 12 months of gender pay inequity and gender undervaluation of work issues within modern award minimum wages that apply to female-dominated industries and occupations. It has put employers on notice that the outcome of that review may occur as part of the 2023-24 wage review.

Next steps for employers

In addition to the above increase in the minimum wage, 1 July 2023 also sees an increase in the minimum superannuation guarantee contribution to 11%.

When applying the above minimum wage increase (where relevant), employers should also check if there are any additional costs to any piece rates or allowances that use the base rate of pay in the modern award for calculation from 1 July 2023.

For those employers utilising the annualised wage provisions that exist in some modern awards, now would be an appropriate time to review whether the annual wage being paid still satisfies the requirements of the award. They should also assess whether employees need to be notified in writing of any change to the number of overtime hours that can be worked in a pay period.

Further information about the minimum wage increases is available from: Decisions & statements for the Annual Wage Review 2022–23 | Fair Work Commission (fwc.gov.au)

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This publication is for information only and is not legal advice. You should obtain advice that is specific to your circumstances and not rely on this publication as legal advice. If there are any issues you would like us to advise you on arising from this publication, please let us know.

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