Annual Wage Increase Announced By FWC

The Fair Work Commission (FWC) announced an increase to the National Minimum Wage and minimum wage in Modern Awards on Friday 2 June 2023, following the annual minimum wage review.

The minimum wage increases include:

• National minimum wage will increase by 8.6% from $812.60 per week ($21.38 per hour) to $882.80 per week ($23.23 per hour) based on a 38-hour week for Award/Agreement free employees; and
• A 5.75% increase to minimum wage rates within Modern Awards

The FWC considered three main factors in determining the increase in minimum wage rates.

First, it gave significant importance to the impact of inflation on the ability of modern award-reliant employees, particularly those with lower wages, to meet their basic financial needs. Second, the FWC considered the strength of the labour market in recent times. Third, it recognized that increasing minimum wage rates would disproportionately benefit female workers, potentially helping to reduce the overall gender pay gap in the workforce.

The summary of the decision can be found here: Annual Wage Review 2022-23 – Announcement of Decision (fwc.gov.au)

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

The MPAQ HR team will be providing the updated wage sheets in the coming weeks and will have them available on the MPAQ website from the 1 July 2023.

If you are unsure if your employees are covered by a modern award or the national minimum wage, please contact the MPAQ HR team on 07 3273 0800 or email hr@mpaq.com.au.