The Fair Work Commission (FWC) has announced the outcome of the 2024 minimum wage review. Key points from the decision are:

• There will be a 3.75% increase to minimum award wages.
• The national minimum wage will increase to $915.90 per week or $24.10 per hour.
• These changes will take place from the first full pay period starting on or after 1 July 2024.

As previously announced, the superannuation guarantee rate will also be increasing to 11.5% from 1 July 2024 and will then increase again on 1 July 2025.

Next steps for you:

1. Review your pay rates: Ensure you are compliant with the new minimum rates, even if you already pay above award rates, have employees on hourly rates or salaries, or have employees under Enterprise Agreements. Compliance with the new minimum rates is mandatory.
2. Implement new rates: Be prepared to implement the new rates starting from the first full pay period after 1 July 2024.
3. Superannuation increase: Remember that the Superannuation Guarantee rate will increase to 11.5% from any wages paid after 1 July 2024, applicable to all employees regardless of award coverage. Your payroll software should automatically update this, however it is recommended to confirm in your first pay run of the year.

Fair Work will release updated figures for each of the Modern Awards over the next few weeks. These updates may include increases in allowance amounts. While it’s important to budget for these increases, it is recommended to wait for the specific award rates before making final adjustments to avoid duplication.