Australia’s minimum wage and award wages will increase by 3.75 per cent from July 1, the Fair Work Commission has announced. Source: ABC News.
The decision will see the national minimum wage increase to $24.10 per hour and $915.91 per week, based on a full-time, 38-hour working week.
It is an increase of about $33 a week to the current minimum wage, and affects about 2.6 million workers – equivalent to 20.7 per cent of the national workforce.
Overall, the Fair Work Commission (FWC) estimates the increase to minimum and award wages will affect “about a quarter of all Australian employees”.
“The increase of 3.75 per cent which we have determined is broadly in line with forecast wages growth across the economy in 2024 and will make only a modest contribution to the total amount of wages growth in 2024,” the commission said.
“We consider therefore that this increase is consistent with the forecast return of the inflation rate to below 3 per cent in 2025.”
The FWC said the increase to the minimum and award wages would have a “limited” effect on the broader economy, noting employees who relied on modern award minimum wage rates were “significantly different” to the entire Australian workforce.
“They mostly work part-time hours, are predominantly women, and almost half are casual employees. They are also much more likely to be low paid,” the commission said.
In delivering its decision, the FWC said living standards, higher living costs and workforce participation were major considerations in determining the increase to the minimum and award wages.
The FWC noted that modern award minimum wages remained lower than they were five years ago, in real terms.
However, the FWC deemed it was “not appropriate” to increase award wages “by any amount significantly above the inflation rate”.
The Australian Council of Trade Unions (ACTU) had argued for an increase of 5 per cent to the minimum wage, and the federal government had pushed for an increase in line with inflation.
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Australia’s minimum and award wages to increase by 3.75 per cent after Fair Work Commission ruling (By Kate Ainsworth and Emilia Terzon, ABC News)
