The Fair Work Commission (FWC) has announced a 3.75% increase in Australia’s minimum and award wages.
This adjustment elevates the national minimum wage to $24.10 per hour, which translates to $915.91 per week for a full-time, 38-hour work week. The increase adds an extra $33 per week for minimum wage earners, affecting approximately 2.6 million workers, or about 20.7% of the national workforce. In total, the FWC estimates that around a quarter of all Australian employees will be impacted by this change.
“The increase of 3.75% 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,” stated the commission. The FWC emphasized that the increase to minimum and award wages would have a “limited” effect on the broader economy, noting that employees relying on modern award minimum wage rates represent a unique segment of the workforce.
These employees predominantly work part-time, are mainly women, and nearly half are casual workers, making them more likely to be low-paid. In its decision, the FWC highlighted that living standards, higher living costs, and workforce participation were major considerations in determining the wage increase.
“A primary consideration has been the cost-of-living pressures that modern-award-reliant employees, particularly those who are low paid and live in low-income households, continue to experience notwithstanding that inflation is considerably lower than it was at the time of last year’s review,” the commission said.