Australian National minimum wage increased by 5.75 Per Cent

In coming to this decision, the FWC’s Expert Panel gave significant consideration to the impact of the current rate of inflation on employees reliant on modern awards. The FWC Expert Panel identified the following key findings:

• The decline in real wages among modern award-reliant employees has had a considerable adverse effect, particularly on low-income earners. This decline has resulted in reduced living standards, financial pressures on households, and the likely incapacity to meet basic financial needs
• Gender pay gaps continue to remain a significant issue within the Australian labour market
• The robustness of the recent labour market was taken into account, and it was determined that increases in modern award minimum wage rates would disproportionately benefit female workers. This is expected to contribute to narrowing the overall gender pay gap
• The forthcoming increases in the Superannuation Guarantee contribution rate, from 10.5% to 11.0%; and
• Anticipated changes in the labour market and the effects it may have on casual employees and specific industries.

Key Takeaways

Employers should review their current pay arrangements, taking into account loadings, penalties, allowances and overtime payments to ensure that they are calculated with reference to the minimum wage increases.

National Employment & Labour Lawyers have a dedicated team who can answer any of your questions about how the wage increase may affect your existing employment contracts or impact your business. We offer a free and confidential initial consultation, where we can discuss your situation and provide you with tailored advice. Get in touch with us today!