The Fair Work Commission’s (Commission) Expert Panel for annual wage reviews (Panel) handed down its much-anticipated Annual Wage Review decision this morning. The Panel approved a 5.75% increase to Modern award rates and the National Minimum Wage will increase to $23.23 per hour. These changes will take effect from 1 July.
The Panel noted that the current combination of ‘low unemployment, falling real wages and high inflation’ was very unusual and presented challenges in this year’s Review.
The Panel placed significant weight on the impact of inflation on ‘low paid modern award-reliant workers’, the recent robustness of the labour market and the fact that increases to modern award minimum wages will provide a disproportionate benefit to female workers and thus may help to reduce the gender pay gap across the workforce. Moderating factors included the upcoming increase to the Superannuation Guarantee rate (which will increase from 10.5% to 11% on 1 July) and the effect that an expected weakening in the labour market may have on certain industries and casual workers.
Although the Panel had regard to gender equality issues in this year’s Review, it noted that the scope and timing of the Review prevented it from addressing these matters to finality and it foreshadowed doing so in future Reviews or other Commission proceedings.
To access the Commission’s full decision, please click Annual Wage Review Decision or to discuss the decision in more detail, please feel free to contact a member of the HMB Law team on (03) 9448 9600.
The above is general information and should not be taken as legal advice.
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