As of 1 July 2023, the National Minimum Wage has increased to now be $882.80 per week or $23.23 per hour. This minimum wage increase will have a direct impact on employees under the Modern Award system, with a 5.75% increase to the modern award minimum wages.

These wage increases take effect from the first full pay period on or after 1 July 2023.

This is the largest increase in minimum wages in history and comes off the back of a 5.2% increase in 2022.

In handing down their decision, the Fair Work Commission cited the current rate of inflation and its impact on the 2.7 million Modern Award employees in meeting their basic financial needs.

Commission President Justice Adam Hatcher stated that “inflation is reducing the real value of these employees’ incomes and causing households financial stress.”

“We have also taken into account the recent robustness of the labour market, and the fact that increases to Modern Award minimum wage rates will provide a disproportionate benefit to female workers and may contribute to narrowing the aggregate gender pay gap across the entire employee workforce,” he said.

Alongside these changes to the National Minimum Wage and modern award wages, the super guarantee rate will also increase from 10.5% to 11%.

Need some help navigating the impact of this increase?

If you need a wage assessment or review of which Modern Award should be applied to your employees, please reach out to our team. You can call Director Nikki Jenkinson on 0472 545 584 or email projects@commongoalconsulting.com.au.