In this episode of TaxLand with Fletch and Sarah, we are honoured to welcome special guest Michael May, barrister from Level 27 Chambers. We delve into the ATO’s PCG 2021/4 ...
From 1 July 2024, the national minimum wage will increase to $915.90 per week, or $24.10 per hour. This weekly rate is based on a 38-hour week for a full-time employee.
Minimum wage rates in all modern awards will also increase by 3.75%, effective from 1 July 2024. This will affect approximately 20.7% of the Australian workforce.
Employees will be entitled to the increased rate from their first full pay period on or after 1 July 2024.
This pay increase will apply to all employees on a minimum wage rate. This includes junior employees, employees performing work under a training arrangement and employees with a disability.
The Fair Work Commission cited cost-of-living pressures as the primary reason for the increase.
This year’s increase is smaller than the 5.75% increase that occurred in 2023, with the Fair Work Commission noting that inflation has started to decrease and many employees will soon receive the benefit of tax cuts and other cost-of-living relief measures.
With this increase on the horizon, now is the time for employers to ensure that they are paying their employees the correct rates.
If employers do have employees on minimum wage rates, they will need to increase these rates by 3.75% from 1 July 2024.
Where annualised wage arrangements are being used, employers should also be assessing whether these arrangements are still satisfying the minimum award requirements.
If employers have enterprise agreements that provide for wage increases in line with the annual wage review, these will also need to be increased.
From 1 July 2024, the minimum superannuation guarantee will increase to 11.5%. Employers should also be implementing this increase.
For more information on the minimum wage increase, please visit: Annual Wage Review 2023-24.
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Cooper Grace Ward acknowledges and pays respect to the past, present and future Traditional Custodians and Elders of this nation and the continuation of cultural, spiritual and educational practices of Aboriginal and Torres Strait Islander peoples.
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