Fair Work Annual Wage Review 2022-23 Decision
Minimum wage increasing by 5.75% from 1 July 2023
On Friday 2 June 2023 the Fair Work Commission handed down its Annual Wage Review 2022 – 2023 decision.
From the first full pay period on or after 1 July 2023, the minimum wage will increase by 5.75 percent to $882.80 per week or $23.23 per hour.
Modern award minimum wage rates will also be increased by 5.75 percent, rounded to the nearest 10 cents. The increase will take effect from the first full pay period on or after 1 July 2023.
Under the Fair Work Act 2009 (Cth), employers must pay their employees the minimum wage under the applicable modern award, and as such will need to pass on the pay increases in accordance with the decision. This also includes those employees covered by Agreements where those rates fall below the new minimum wage.
If employers pay their employees above the minimum wage, they may be able to absorb some or all of the increase, but this may depend on contractual arrangements.
Please note, employees covered by the Social, Community, Home Care and Disability Services Industry Award 2010 were subject to the Equal Remuneration Decision and the annual wage increase will need to be applied on top of these rates.
Please contact Naomi Boyle at WPL on 9972 4950 or at nboyle@workplacelegal.com.au for assistance to ensure that you are paying your employees the minimum wage.