Hi there, Andrew Koleda from On Demand HR here to unpack the Fair Work Minimum wage decision for the 2023/2024 financial year that was announced this morning.  

The headline increase was 5.75% and no doubt in response to the now stubborn levels of inflation that have set into the economy despite the consistently low levels of unemployment.  Of interest in the decision was that around 25% of the working population were covered by the National Minimum wage and award increases.  Taking you behind the scenes here at On Demand HR, in the prediction pool for the decision it was the person that guessed the highest increase that took home the bacon, so that should give you some indication that the decision was on the higher end of the forecast.  

So what should your business do?  Well same as every year, the minimum wage decision is always a trigger point to review your pay rates and ensure that you are remaining compliant.  Of course this is particularly true  if you are following the award with your pay rates.  Following changes to some broadly applicable modern awards covering annualised salary arrangements, we are recommending more businesses carry out an annual wage review to ensure their continued compliance.

To complicate matters even further, even though wages increase, so will allowances and the high income threshold. In other words there are flow on effects of this decision across the entire Workplace Relations landscape.

If you are already an On Demand HR Essential Support Member, this will be included as part of your membership.  For those of you who are not already members, why not take this opportunity to reach out to us and schedule a time to have a chat about your HR & Workplace Relations affairs?  The best way to do so is by visiting our website at www.ondemandhrcom.au 

So that’s it for this short update on the national minimum wage decision for 2023/2024 and we are looking forward to seeing you in the next one.