The Fair Work Commission (FWC) has announced a 3.75% increase in Australia’s minimum and award wages.
This adjustment will raise the national minimum wage to $24.10 per hour, equating to $915.91 per week for a full-time, 38-hour working week.
This increase translates to an additional $33 per week for those earning the minimum wage, impacting approximately 2.6 million workers, which is about 20.7% of the national workforce.
Overall, the FWC estimates that around a quarter of all Australian employees will be affected 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 hours, 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.
“In determining this level of 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.
