The Fair Work Commission recently completed the Annual Wage Review 2024, and has announced a 3.75% increase to the national minimum wage.
Most employees are covered by an Award. If you’re not sure which Award applies to your business, it’s a really good idea to get some advice. You can book in for a call with My HR Partner to get advice about Awards and pay rates if you’re not sure.
You may also have more than one Award that applies to employees in your business. And some employees aren’t covered by an Award.
For anyone not covered by an award or an agreement, the new national minimum wage will be $915.80 per week or $24.10 per hour. These are the minimum rates for permanent employees and the increase applies from the first full pay period starting on or after 1 July 2024. Casual employees covered by the national minimum wage also get the increase and their pay rate includes at least a 25% casual loading.
Junior employees, apprentices and trainees covered by the minimum wage or an Award get paid a percentage based on their age or stage of their apprenticeship/traineeship.
If you currently pay above the National Minimum Wage or above Modern Award rates of pay, you are not obliged by this decision to increase your employees’ rates of pay, but you need to make sure that their rates remain equal to or higher than the applicable Award rates of pay, once the increase is applied.
If you have any Individual Flexibility Agreements, you should reassess those agreements to ensure employees remain “better off overall” when compared to the newly increased Modern Award pay rates.
The Fair Work Ombudsman usually update the pay rates on their website in the last couple of days in June. If you need help with checking you are paying your employees correctly, it’s a great time to do a payroll audit. You can book in for a call:
