2023 – 2024 annual wage review

Don’t forget for all pay periods starting on or after 1 July 2024 you need to consider the Fair Work Commission’s 2023 – 2024 annual wage review.

For many employees, the award rate of pay will increase by the higher of $24.10 per week or 3.75%.  When combined with the 0.5% increase in compulsory superannuation, also effective 1 July 2024, this equates to a minimum increase in employee compensation of 4.25%.

Does this mean I automatically have to increase my rates of pay?

No, the announced changes only apply to the minimum rates of pay.  If you pay above award wages, you may not need to pass on any or all of the increase in award rates.

For example if the employee is on $1,000 a week and the revised minimum rates of pay for that person is now $950, there is no legal requirement to increase their pay.  If the revised minimum rates of pay for that person is now $1,020, you may only need to increase their pay by $20 or 2%.

So what do I need to do as an Employer?

You need to take steps to ensure that you comply with the minimum wage rules.  And to do this you will need to do a mini payroll audit.  Here are the steps in this audit:

Step 1 – get a list of all current employees, their current wage rate and their award classification.

Step 2 – obtain from the Fair Work website the revised minimum rates applicable 1 July 2024 of pay for each employee based on their award classification.

Step 3 – compare the current rate of pay per employee with the minimum rate of pay.

Now you have 2 potential outcomes.

Outcome 1 – Their current rate of pay is above the revised minimum rate of pay effective 1 July 2024.  There is no legal requirement to increase this person’s pay.  You can increase it if you want to. This assumes the person does not work unpaid overtime.  If they do, you will need to work out what their annualised wage rate is including unpaid overtime and will need to compare this to the revised minimum rate of pay effective 1 July 2024.

Outcome 2 – The current rate of pay is below the revised minimum rate of pay effective 1 July 2024.  In this situation you need to increase their pay to at least the minimum rate of pay.  You can pay them more, but not less.

Contact Wayne on wayne@arealcfo.com.au or 0412 227 052.

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