In its decision released on 2 June 2023, the FWC expert panel has increased the national minimum wage (“NMW”) to $882.80 per week, or $23.23 per hour.
This increase represents a two-step approach taken by the panel to increase the NMW.
The first is that all Award minimum rates will increase by 5.75%.
The second is that the minimum wage will no longer be based on the C14 classification (which is one of the lowest classifications in the Award system) but instead will be based on the C13 classification. This will mean that some of the lowest-paid employees will receive an additional modest increase.
Award employees will also see a 5.75% increase, with their weekly pay increasing to $859.32, or $22.61 per hour.
Emphasising the low 0.7% of employees that the NMW applies to, the panel noted the limited impact the increase will have on the broader economy and does not foresee that the decision will result in a wage-price spiral.
Significant weight was placed by the panel in forming the decision on the impact that the current inflation rate has had on modern award-reliant employees.
These increases take effect from the first full pay period on or after 1 July 2023.
You can read the decision in full here https://www.fwc.gov.au/documents/resources/2023fwcfb3500.pdf
If you have any queries on the wage review, please contact our Employment and Workplace Relations team.
This publication has been prepared for general guidance on matters of interest only and does not constitute professional legal advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication and to the extent permitted by law, Cowell Clarke does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting or refraining to act in relation on the information contained in this publication or for any decision based on it.