Fair Work Annual Wage Review

The Fair Work Commission (FWC) issued its annual wage review decision on 2 June. Under the Fair Work Act 2009 (Cth) the FWC are tasked with:

(a) reviewing the national minimum wage for employees who are not covered by a modern award; and

(b) reviewing the modern award minimum wages.

This involves consultation with industry stakeholders, however the decision is made by the FWC through their assessment of a range of factors. The FWC consider broader economic impacts and considerations such as living standards, workforce competition and performance of the economy.

The Decision

Award rates of pay and the national minimum wage will be increased by 5.75 per cent effective from 1 July 2023.

Takeaway

Review your employee minimum wage entitlements and ensure that you apply any increase from 1 July 2023.  If you have staff that have award entitlements that are set off under a higher wage arrangement, ensure that you check they are still better off overall, noting the above increase.