On 2 June 2023, the Fair Work Commission announced the increase to the national minimum wage following its Annual Wage Review.
As of 1 July 2023, the below increases were awarded in Modern Award rates of pay and allowances:
- An increase of 5.75% per week in all Adult weekly rates in the Modern Awards;
- ‘Work-related’ allowances increased in accordance with the specified formula contained in each Modern Award;
- ‘Expense-related’ allowances increased in accordance with the percentage movement in the applicable index figure as specified by the Modern Award;
- An increase in the Adult National Minimum Wage to $882.80 per week ($23.23 per hour).
This increase applies from an employee’s first full pay period starting on or after 1 July 2023.
Rates of pay for Juniors and trainees will also increase on a proportionate basis.
“We have also taken into account the recent robustness of the labour market, and the fact that increases to modern award minimum wage rates will provide a disproportionate benefit to female workers and may contribute to narrowing the aggregate gender pay gap across the entire employee workforce,” the Commission noted in delivering this year's decision.
Moderating factors to increase wages included the increase in Superannuation Guarantee contributions rate to 11 per cent and the need to avoid entrenching high inflation expectations.
Whilst the decision will be welcomed by unions and employees, employers will likely feel the strain of such a significant wage increase. Despite this, both the Children’s Services Award 2010 and the Educational Services (Teachers) Award 2020 will receive the wage increase from ppc 1 July 2023.
ACA Qld members can now access updated versions of the Children's Services Award 2010 and the Educational Services (Teachers) Award 2020 via logging in and navigating to our Industrial Relations page under Business Support and clicking the "Employer Services Website & Awards" button.
Members who have questions about this information are invited to contact the Employer Services Team on (07) 3220 3500.
ACA Qld Team