In their decision announced today, the Fair Work Commission has raised the National Minimum Wage and all modern award minimum wage rates by 3.75 per cent, effective from 1 July 2024. That increase is slightly higher than inflation (which was 3.6% for the 12 months up to March 2024).
Approximately 21% of the Australian workforce (about 2.6 million people) are paid in accordance with minimum wage rates in modern awards. They, and their employers, are directly affected by this decision. In addition, there are some categories of employees who are indirectly affected by way of the Review outcomes being ‘flowed on’ by various means. The Fair Work Commission’s decision will therefore affect the wages of about a quarter of all Australian employees.
The Fair Work Act requires the Commission to take into account specific considerations in conducting the Annual Wage Review, including:
- relative living standards;
- the needs of the low paid;
- workforce participation;
- the performance and competitiveness of the national economy; and
- the need to achieve gender equality.
“The increase of 3.75 per cent which we have determined is broadly in line with forecast total amount of wages growth in 2024. We consider therefore that this increase is consistent with the forecast return of the inflation rate to below 3 per cent in 2025.“
