National Minimum Wage Increase – Are You Ready?
The Fair Work Commission announced the 2023-24 Wage Review Decision on 3 June 2024. All employers need to review the wages and salaries of their employees to ensure compliance with the new minimum standards.
- The national minimum wage and all Modern Award minimum wages will increase by 3.75% from 1 July 2024.
- The new NMW will be $24.10 per hour or $915.90 per week.
- The increased rate must be applied to wages and salaries of employees from the first full pay cycle that starts on or after 1 July 2024. For example, if your weekly pay period starts on Wednesday, the new rates will apply from Wednesday 3 July 2024.
- The National Minimum Wage applies to employees who aren’t covered by an award or registered agreement.
Employers should carefully review their employees’ existing rates of pay and make any necessary adjustments to their payroll, including updating wage calculations, tax withholdings, and superannuation contributions.
It is crucial for employers to ensure that employees paid by salary are better off overall than they would be if paid the minimum wage, considering additional entitlements such as overtime and penalty rates. Non-compliance with minimum wage requirements may result in legal disputes, penalties, fines, and reputational damage. Employers should seek legal and accounting advice if uncertain about their obligations or require assistance in implementing necessary changes.
Detailed information about the NMW changes can be found on the Fair Work website.
We would love to hear what you think about the new national minimum wage?
