The Fair Work Commission (FWC) has announced a 3.75% increase in Australia’s minimum and award wages. This change raises the national minimum wage to $24.10 per hour, or $915.91 per week for a full-time 38-hour workweek.
This adjustment translates to an additional $33 per week for minimum wage earners, affecting around 2.6 million workers, or 20.7% of the national workforce. Overall, approximately a quarter of all Australian employees will be impacted by this change.
The FWC stated that this wage increase is in line with the forecast wages growth for 2024 and will only modestly contribute to the overall wages growth in the economy.
The commission emphasized that the increase would have a limited effect on the broader economy, as those reliant on modern award minimum wage rates represent a unique workforce segment. These employees are mostly part-time workers, predominantly women, and nearly half are casual workers, making them more likely to be low-paid.
The decision considered living standards, higher living costs, and workforce participation. The FWC noted that despite lower inflation compared to the previous year, cost-of-living pressures for modern-award-reliant employees, particularly those in low-income households, remain significant.