The national minimum wage is the base rate of pay for employees working ordinary hours. This rate is usually determined by the industrial instrument applicable to their employment, such as a modern award or a registered agreement.
Every year, the Fair Work Commission’s (FWC) Expert Panel reviews the minimum wages for employees within the national workplace relations system. The conclusion of this review results in a national minimum wage order, which takes effect from the first full pay period on or after 1 July each year. For 2024, the effective date is July 1.
The national minimum wage order outlines the following for award or agreement-free employees:
- A national minimum wage
- Special national minimum wages for:
- Trainees
- Apprentices
- Junior employees
- Employees under training arrangements
- Employees with disabilities
- A casual loading
2024 Minimum Wage Increase
In June 2024, the FWC announced a 3.75% increase to the national minimum and award wages, effective from July 1 2024. This increase sets the national minimum wage at $24.10 per hour or $915.91 per 38-hour week (before tax). Casual employees covered by the national minimum wage will also receive a minimum of 25% casual loading in addition to the national minimum wage. This change impacts approximately 20.7% of the Australian workforce, or about 2.6 million employees.
For award and agreement-free trainees and apprentices, the percentage scale in the Miscellaneous Award is applied to the National Minimum Wage.
Most employees in the national workplace system are covered by a modern award, which includes the minimum wage and other terms and conditions specific to industries and occupations.
Employers and employees should check relevant modern awards to see if transitional arrangements apply. Minimum wages under modern awards may include:
- Wage rates for adults, in some cases, at different rates according to experience and qualifications
- Wage rates for juniors, employees with a disability, and employees under training arrangements
- Casual loadings
Action Steps for Business Owners
As an employer, it is crucial to review all minimum-wage and award-rate employment contracts to ensure wages meet or exceed the new minimum wage or award rate as of July 1 2024. Implement salary increases by notifying your employees through a formal document, such as a Salary Increase Letter.
Regularly reviewing and updating your payroll in accordance with the FWC’s annual wage decisions ensures compliance and helps maintain positive employee relations.
Seek Expert Advice
If you have any questions regarding this article or need help reviewing your employment contracts, contact the expert team of lawyers at The Quinn Group by calling 1300 QUINNS (1300 784 667) or +61 2 9223 9166, or submit an online enquiry form to arrange an appointment.
