Fair Work Commission has mandated a 5.75% increase in minimum wage rates

Millions of Australian workers are in for a pleasant surprise starting tomorrow, 1 July, as the national minimum wage gets a boost. The new wage increase will result in a weekly pay rise for numerous employees across the country.

Effective from the first full pay period beginning on or after 1 July 2023, the national minimum wage will rise to AUD 23.23 (USD 15.38) per hour, a significant increase from its previous value of AUD 21.38 (USD 14.16). This amounts to a weekly wage of AUD 882.80 (USD 584.63), marking a rise of AUD 70.20 (USD 46.49) from the previous weekly amount of AUD 812.60 (USD 538.14) for full-time employees working a 38-hour week.

This change comes after the Fair Work Commission’s Annual Wage Review announcement on 2 June 2023. Furthermore, casual employees entitled to the national minimum wage will now receive a minimum of AUD 29.04 per hour, which includes a 25% casual loading.

Additionally, the Fair Work Commission has mandated a 5.75% increase in minimum wage rates for employees covered by award agreements. This increase will take effect from the first full pay period beginning on or after 1 July 2023.

Sandra Parker, the Fair Work Ombudsman, emphasized that employers must ensure that their employees receive at least the relevant minimum wage as determined by the Fair Work Commission.

In other wage-related news, direct care and certain senior food services employees in the aged care sector received a generous 15% wage increase starting from 30 June 2023.

Moreover, for new parents who have babies born or adopted after 1 July 2023, there is a positive change in parental leave policies. These parents will now have the opportunity to share 20 weeks of paid parental leave between them, providing a better support system for families in the workforce.