The Fair Work Commission (FWC) Minimum Wage Panel has decided to increase the national minimum wage and all modern award minimum wage rates by 3.75%, effective from 1 July 2024.

Employer groups were seeking a 2% increase, which they said would amount to 2.5% once the increase in the superannuation guarantee contribution rate, effective from 1 July 2024, is taken into account. Unions proposed a 5% increase.

As of 1 July 2024, a national minimum wage of $915.90 per week, or $24.10 per hour, will apply.

The FWC’s decision is based on the following observations:

• the Australian economy is ending 2023–2024 with good prospects of realising a ‘soft landing’ (avoiding a recession while lowering inflation and preserving the labour market at or near full employment);
• wage increases have lagged inflation until very recently, with annual wage growth nudging above inflation only in the past two quarters;
• many workers and households have seen a deterioration in their disposable incomes in the past couple of years; and
• despite the increase of 5.75% last year, real wages for modern award-reliant employees are lower than they were 5 years ago.

Modern awards and classifications applicable to early childhood education, care workers, disability home-care workers, other social and community services workers, dental assistants, medical technicians, psychologists, other health professionals and pharmacists will be the subject of FWC proceedings to examine and address gender undervaluation.