The Fair Work Commission (Commission) handed down its Annual Wage Review 2023–24 decision today. 

The Commission decided to increase the National Minimum Wage and all modern award minimum wage rates by 3.75 per cent, effective from 1 July 2024.

The Commission also determined to establish a program for the timely resolution of gender undervaluation issues arising in respect of certain modern awards.

National Minimum Wage and modern award minimum wage rates

The National Minimum Wage applies to employees who are not covered by an award or registered agreement. 

Employees covered by an award or registered agreement have to be paid the minimum pay rates in their award or agreement, including penalty rates and allowances. These pay rates may be higher than the National Minimum Wage.

The National Minimum Wage order will contain, amongst other things, a national minimum wage of $915.90 per week or $24.10 per hour, and a casual loading of 25 per cent for award/agreement free employees.

In handing down its decision, the Commission considered:

• Economic, labour market and business considerations, including the inflation rate remaining above the Reserve Bank of Australia’s (RBA) target range; the RBA’s assessment concerning future inflation and interest rates; the Federal Budget delivered on 14 May 2024 (Budget); economic growth; total business profits; and labour productivity growth in Australia and comparable countries.
• Relative living standards and the needs of the low paid, including the effect of inflation on real wages of modern award-reliant employees; cost-of-living pressures; the Stage 3 tax cuts taking effect from 1 July 2024; and measures announced in the Budget to assist with the cost of living. 
• Gender equality, including gender pay gaps and the need to achieve equality; ensuring equal remuneration for work of equal or comparable value and eliminating gender-based undervaluation; and female participation in the workforce.
• Job security, including any changes in full-time, part-time and total employment.
• Collective bargaining, including whether the exercise of modern award powers may affect the extent to which enterprise bargaining is occurring, and the long-term decline in enterprise bargaining

Program to address gender undervaluation

In relation to the gender undervaluation issues, the Commission will shortly initiate proceedings concerning the following awards:

• Children’s Services Award 2010;
• Social, Community, Home Care and Disability Services Industry Award 2010;
• Health Professionals and Support Services Award 2020;
• Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020; and
• Pharmacy Industry Award 2020.