The Fair Work Commission (FWC) announced the Annual Wage Review 2022-23 on 2 June, 2023 which increased the minimum wage and Modern Award rates by 5.75%.
From 1 July 2023, the National Minimum Wage has increased to $882.80 per week or $23.23 per hour. The new Modern Award rates are to be paid from the first full pay period on or after 1 July 2023.
The National Minimum Wage applies to employees not covered by an award or registered agreement. Where employees are covered by a Modern Award but are already paid more than the new Modern Award minimum rates, there is no obligation to increase the wage for such employees. However, no employee covered by a Modern Award should be paid less than the new Modern Award minimum rates.
Employees who are covered by Enterprise Agreements
Employers are obliged to ensure that the base rate of pay for all employees covered by an Enterprise Bargaining Agreement does not drop below the base rate of pay in a relevant Modern Award. Given the significant increase in the minimum award rate (5.75%), some employees covered by Enterprise Agreements may need to have their base rate increased to match the base rate in the relevant Award.
Employer Superannuation Guarantee Charge (SGC)
From 1 July 2023, employers must increase the minimum employer superannuation contribution from 10.5% to 11% for their employees. This increase applies to any salary or wages payment made on or after 1 July 2023.
The Fair Work Commission has released updated tools including wages tables for the modern awards to assist employers with these changes.
You can located these tools and wages tables here.
For any assistance in understanding these changes and how they may affect you as an employer, please contact your Hall Chadwick QLD advisor.