Annual Wage Review 2022-23
The Fair Work Commission announced the rate that minimum wages will increase by, from the first full pay period on or after 1 July 2023.
The Fair Work Commission decided that minimum wage rates for employees covered by modern awards will increase by 5.75%.
“Award-free” employees are subject to the national minimum wage which will, for full-time employees, rise from $21.38 per hour or $812.60 per week to $882.80 per week or $23.23 per hour (in effect an 8.6% increase). Casual employees will be entitled to a 25% loading on these amounts.
The increases to modern award rates will impact employers covered by enterprise agreements as the law operates so that employers cannot pay a base rate of pay that is lower than the applicable base rate of pay in a modern award. Professional advice should be sought on exactly how this will operate in your business.
Generally speaking, where employers are already paying rates that are higher than the relevant minimum wage, they will not need to increase their rates of pay, unless the new minimum wages overtake the rates that are currently being paid.
Have any questions?
Or if you require any assistance in working out how this decision impacts your business, book a phone meeting here or contact us using the form below.
– Team BKSP
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