AUSTRALIA | Minimum wage increases have officially begun, with a particular focus on the hospitality and foodservice sectors.
The Fair Work Ombudsman has reminded employers that a 3.75 percent minimum wage increase should be applied to eligible employees’ pay from the first full pay period starting on or after 1 July 2024.
The new National Minimum Wage is $915.90 per week (based on a 38-hour week for a full-time employee), or $24.10 per hour. The rates have increased from $882.80 per week and $23.23 per hour. Casual employees entitled to the National Minimum Wage must receive a minimum of $30.13 per hour, which includes 25 percent casual loading.
The National Minimum Wage is the base rate for adult employees in the national system who are not covered by an award or registered agreement.
The 3.75 percent increase also applies from the first pay period starting on or after today to the minimum wage rates within awards. The FWO has updated our Pay Calculator to help employers and employees calculate the new pay rates.
Fair Work Ombudsman Anna Booth urged employers to check whether the 3.75 percent increase applies to their employees and ensure they are paying workers correctly.
“Rather than potentially having to back-pay employees and face court-imposed penalties down the track, employers should do the right thing from the start and pay applicable minimum wage increases from the first pay period starting on or after 1 July 2024,” said Booth.
The increase may apply to employees covered by a registered agreement, as the base pay rate in a registered agreement can’t be less than the base pay rate in the relevant award.
The Fair Work Commission announced the National Minimum Wage increase on 3 June 2024, following its annual wage review. Pay rates for award and agreement-free trainees and apprentices are based on the Miscellaneous Award 2020. The Fair Work Ombudsman has interactive tools for pay rates within the fast food and restaurant industry awards.
