Annual Wage Increase Announced by Fair Work Commission
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The Fair Work Commission (FWC) announced an increase to the National Minimum Wage and Modern Awards on Monday 3 June 2024, following the annual minimum wage review.
The national minimum wage has increased by 3.75% which will also be applied to minimum wage rates within Modern Awards, with the adjustment set to take effect from the first pay period starting on or after 1 July 2024.
The FWC considered the following factors in determining the increase in minimum wage rates:
- relative living standards and the needs of the low-paid; and
- promoting social inclusion through increased workforce participation.
The summary of the decision can be found here Annual Wage Review 2023–2024 – Announcement of Decision
An employer has an obligation to their employees to meet the updated minimum entitlements as per the relevant award. The relevant Modern Awards that impact MPAQ members include:
- Plumbing and Fire Sprinklers Award 2020
- Clerks (Private Sector) Award 2020
- Building and Construction General Onsite Award 2020
- General Retail Industry Award 2020
Wage sheets
The minimum wage sheets are now available to contracting members on their dashboard. It is important businesses make adjustments to their payroll systems to ensure any increases apply from the first full pay period on or after 1 July 2024.
Access updated wage sheets here
STP Phase 2
In accordance with the ATO STP (Single Touch Payroll) Phase 2 requirements, each allowance must be separated out on an employee's payslip.
This means, each allowance, such as industry allowance, special fixed allowance, registration allowance etc, must be a separate line item on an employee’s payslip, including for apprentices.
We have been working with Xact accounting who have put together some information and a video of how to implement with Xero.
Superannuation Guarantee Charge – Increase
Master Plumbers Members should be aware of and prepared for a Superannuation Guarantee Charge (SGC) increase from 11.0% to 11.5%. The SGC increase will take effect from 1 July 2024.
You'll need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July 2024.
Make sure you update your payroll and accounting systems so that you continue to pay the right amount of super for your employees.
If you are unsure if your employees are covered by a modern award or the national minimum wage, please contact the MPAQ Advisory team on 07 3273 0800 or email advice@mpaq.com.au.
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