Written by: Eloise Turnbull
Significant Increase in Minimum Wages Sanctioned by Fair Work Commission
In a significant development, the Fair Work Commission (FWC) panel has recently approved an across-the-board increase of 5.75% in all award rates and a notable 8.6% rise in the National Minimum Wage (NMW). As a result, the NMW will experience a considerable boost, rising from its previous weekly amount of $812.60 to $882.80. On an hourly basis, this translates to an increase from $21.38 to $23.23.
This decision by the FWC expert panel carries considerable implications for workers across various industries and income levels. The decision comes after the steep rise in the inflation rate in the March quarter, as the Australian Council of Tarde Unions (ACTU) requested a 7% rise across all awards. By significantly increasing both award rates and the NMW, the panel aims to address concerns surrounding fair compensation and the rising cost of living.
Although the NMW is due to increase robustly, it is not predicted to trigger discernible macroeconomic trends or ripple into a wage spiral. NMW only applies to a mere 0.7% of all Australian employees.
From 1 July 2023, the approved increase in award rates and the NMW will come into effect.
As an employer, it is crucial to take proactive steps to ensure that your employment contracts align with the new regulations. To address any concerns and ensure compliance with the updated laws, we highly recommend booking a consultation with our trusted Employment Law Solicitors today.
Adhering to employment laws not only protects your business from legal consequences but also demonstrates your dedication to treating your employees fairly and ethically. By addressing any gaps or inconsistencies in your employment contracts, you can safeguard your company’s reputation and build trust with your workforce.
The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.
Contact our Employment Law team today to discuss your employment rights.
Ph: 5444 1022
Greenhalgh Pickard’s Employment and Litigation Team