The Fair Work’s annual review of minimum pay rates has provided for employees on the national minimum wage rate an increase of 8.6% raising the weekly wage from $812.60 to $882.80 for a 38 hour week ($23.23 per hour). In regards to minimum Award rates they will increase by 5.75%. These increases will be effective from 1 July 2023.
What does this mean for you?
The increase in your wage will depend on the applicable terms that govern your employment in relation to pay rates. In simple terms this means the following for our members as employees under the following arrangements:
National Minimum pay rate: No adult employee (excepting those on the Supported Wage System) can be paid less than $23.23 an hour or $882.80 for a 38 hour week. Casuals will be entitled to a 25% pay loading on top of this.
Award rate employees: For those paid in accordance with the minimum pay rate under their relevant Award the decision increases the rate of all classifications by 5.57%. The new rates will be published in the up coming weeks.
Employees covered by an Enterprise Agreement: Employees covered by an Enterprise Agreement have their wage rates identified in the Agreement and as such will not be affected however there are many Agreements whose pay rates reliant on Award minimum rates or provide for ‘a no worse off’ award rate pay system that will be affected by the increase. Further there are Enterprise Agreements that have ‘nominally expired’ where the issue of a pay increase remains a vexed issue. Members are advised to contact the ASU if they have any queries in relation to these matters if in doubt.
Employees on Individual contracts: This is where it gets a bit tricky. Contracts often provide for wages above the minimum above Award rates and as such can be offset against the increases however the increase can be used as a source for discussion regarding any annual pay review regardless of the fact that you are paid above Award rates. The argument put here is that this is what is happening to Award rates (and as such the market rates) across the country and should be recognised by your employer.
For some employees the employer may pay you an Award rate without informing you that you are covered by an Award (even when you are actually covered by an Award) and this obviously can lead to robust discussion with your employer. Once again if you need clarification or guidance around this predicament its best you talk to the Union where such a scenario exists.
As a member you are welcomed to access the advice of the union which membership provides for and can appreciate that you as a paid union member have contributed to the advocacy by the union movement for these pay increases.
For further information you can access the decision and summary from Fair Work using these links:
https://www.fwc.gov.au/hearings-decisions/major-cases/annual-wage-reviews/annual-wage-review-2022-23
https://www.fwc.gov.au/documents/resources/2023fwcfb3500.pdf
https://www.fwc.gov.au/documents/resources/2023fwcfb3501.pdf
