FWC Announces 3.75% increase to National Minimum Wage & Modern Award rates

Jun 4th, 2024

The Fair Work Commission (FWC) announced the outcome of their Annual Wage Review on Monday 3rd June, confirming that both the national minimum wage (NMW) will increase by 3.75%. This means that the hourly NMW of $23.23 will increase to $24.10, resulting in a weekly minimum wage of $915.90. The same increase will also apply to modern awards, in which 20.7% of the workforce who are currently employed under the terms of an award will also see their minimum wages increase by 3.75%.

While a smaller increase compared to last year, the reasoning behind this figure was explained when the Annual Wage Review was released. That is, while the chief goal was to assist with further decreasing inflation, however other key considerations such as the productivity of the workforce were spotlighted as well.

These changes will take effect from the first full pay period beginning on or after 1 July 2024. The superannuation guarantee will also increase from 11% to 11.5% for payments made from 1 July 2024.

Additionally, the FWC had conducted a review into gender equity within modern awards over the previous financial year. The findings raised some concerns regarding the undervaluation of feminised work, specifically in care-centric industries. In the coming 2024/25 financial year, the FWC has announced that it will be looking further into this issue, with a report to be completed by next year’s Annual Wage Review.

The Awards to be focused on in this review will include, but are not limited to:

  • The Health Professionals and Support Services Award 2020,
  • The Social, Community, Home Care and Disability Services Industry Award 2010, and
  • The Children’s Services Award 2010.
With wages increasing shortly, it is more important than ever for employers to review their employees’ pay entitlements and ensure compensation in line with the updated minimum rates. The specific new rates of pay will be released prior to July 1, 2024.

4/06/2024 Back to News