Each year in early June the Fair Work Commission announces the increase to the National Minimum Wage. In 2023 business groups advocated for an average of 3% while unions pushed for a 7% increase.
While initially causing some confusion for analysts and employers, the wage increase is twofold. Firstly, a historically high increase to the minimum wage of 8.6%. From the first full pay period starting on or after 1 July 2023, the National Minimum Wage will be $23.23 per hour, and $882.80 per week, based on a 38-hour week. The National Minimum Wage applies to employees who aren’t covered by an award or registered agreement.
However, the increase in minimum award rates is 5.75% across all levels other than those at the National Minimum Wage.
If you have employees, there are some important steps you need to take before 1 July 2023 to ensure you continue to comply with minimum wage requirements:
- Determine if you have employees who are covered by an award or an agreement
- Understand if your employees are paid a wage (a per hour rate) or a salary (an annual rate)
- Compare the employee rates of pay against the applicable award and award level to ensure they are in receipt of at least the minimum rate.
- For inclusive hourly rates or annual salaries, consider the hourly rate, annual leave loading, overtime and penalty rate entitlements.
Need help to be certain of the correct rates or to explore the right questions to ask? Business 360 is here to assist. Call us on 1300 287 360 or email email@example.com. If you prefer a confidential discussion, scan or click below to book a time to speak with a member of our team.