3.75% Increase in the 2024 MINIMUM WAGE DECISION

3 June

The Fair Work Commission has announced a 3.75% increase in the 2024 Annual Wage Review decision, the lowest increase since 2021.

The National Minimum Wage Order will operate from 1 July 2024 and will take effect for individual employees in the first full pay period on or after 1 July 2024.

The ACTU sought an increase of 5% and ACCI proposed a 2% increase. ACCI noted in its submission that a 2% increase would, in effect, amount to a 2.5% increase, taking into account the increase to superannuation guarantee contributions effective 1 July 2024.

A number of stakeholders including some State Governments did not pursue a specific increase in their submissions to the Fair Work Commission.

The Fair Work Commission once again observed that the characteristics of the employees affected by the decision differ from the Australian workforce as a whole in that:

they are predominantly female;
almost half are casual employees;
they predominantly work less than 38 hours per week;
they disproportionately receive lower pay;
they are largely employed by small businesses.

The Commission quantified the wages paid to these employees at less than 11 per cent of the national "wage bill".

Minimum Wage Increases since 2019

2019 - 3.0% increase to $740.80 per week $19.49 per hour

2020 -1.75% increase to $753.80 per week $19.84 per hour

2021 - 2.5% increase. Weekly wages rounded to the nearest 10 cents $772.60 per week $20.33 per hour

2022 - $40 per week ($1.05 per hour) increase based on 38 hour week, modern award minimum wages increase by $40 per week up to $869.60 per week or a 4.6% increase applies above that - $812.60 per week $21.38 per hour

2023 - 5.75% increase to $882.80 per week $23.23 per hour

2024 - 3.75% increase to $915.90 per week $24.10 per hour

Gender Undervaluation

Early childhood, dental assistants, psychologists, pharmacists are just some of the industries and occupations which will be the subject of proceedings in the Commission to consider gender undervaluation issues. These proceedings will continue into 2025.