Get Ready for a Minimum Wage Increase on 1 July 2024

The Fair Work Commission has announced an increase in both the National Minimum Wage and minimum award wages by 3.75%. This change will take effect from the first pay period starting on or after 1 July 2024.

Here’s what you need to know and how to prepare for this adjustment.

Details of the Wage Increase

National Minimum Wage: Starting 1 July 2024, the National Minimum Wage will rise by 3.75%, setting the new minimum wage at $915.90 per week or $24.10 per hour. This adjustment is part of the annual wage review aimed at maintaining fair compensation for workers.

Modern Award Wages: Minimum wages for modern awards will also increase by 3.75%. This increase affects various industries and sectors, and employers must ensure that employees covered by these awards are paid at least the new minimum wage.

Effective Date and Implementation

The new wage rates will apply from the first full pay period on or after 1 July 2024. For instance, if your pay period starts on a Wednesday, the new rates will be effective from Wednesday, 3 July 2024. Employers need to update their payroll systems to reflect these changes promptly.

Superannuation Guarantee Increase

Alongside the wage increase, the superannuation guarantee rate will rise from 11% to 11.5% starting 1 July 2024. Employers must ensure their payroll systems are updated to comply with this change.

How to Prepare

To manage this transition smoothly, consider the following steps:

1. Stay Informed: Visit the Fair Work Commission’s Annual Wage Review page for detailed information and updates regarding the wage increase.
2. Check Your Award: Use the Find my award tool to verify which award applies to you and understand the specific wage rates.
3. Update Payroll Systems: Ensure that your payroll and accounting systems are updated to accommodate the new wage rates and superannuation guarantee.
4. Distribute Information: An updated version of the Fair Work Information Statement will be available from 1 July 2024. Make sure this is distributed to all employees to keep them informed about their rights and entitlements.

Stay Up to Date

We encourage everyone to stay updated with these changes. If you know someone who could benefit from this information, share this blog post with them. Additionally, follow us on social media for ongoing updates and reminders.

The upcoming wage increase is part of the Fair Work Commission’s annual review to adjust wages in line with economic factors. By staying informed and prepared, both employers and employees can smoothly transition to the new wage standards.

For any questions or further assistance, feel free to contact us.