Minimum wage increases by 3.75%

Published 3rd June, 2024

Fair Work Commission Hands Down Annual Wage Review Decision 2023-24 

Minimum Rates Increased by 3.75% 

Today (3 June 2024) the Fair Work Commission handed down its Annual Wage Review 2023-24 decision. The decision increases both the national minimum wage and modern award minimum wage rates by 3.75%.  

The national minimum wage is now $24.10 per hour (up from $23.23) or $915.91 per week (up from $882.80).  

By way of comparison, the permanent rate of pay for a Support Services Level 3 under the HPSS Award is increased from $25.88 to $26.85 and a permanent Registered Nurse Level 2, Pay Point 1 will change from $35.19 to $36.51. 

When do the rate increases take effect? 

Increases to the rates of pay in modern awards, such as the Health Professional and Support Services Award, Nurses Award and Hair and Beauty Industry Award take effect from the first full pay period, on or after 1 July 2024.  

Expense related allowances (such as travel allowance, meal allowance) are also increased because of the decision.  

Next steps… 

Practices and businesses are reminded that for staff…   

  • Paid the modern award minimum hourly rate of pay, these ordinary rates must increase in line with decision.  
  • Paid above the modern award hourly rates of pay there is no requirement to automatically increase the current rates of pay, as this increase can potentially be absorbed by the excess amount you’re already paying. The exception however, is if the new award minimum rate is greater than the current rate you’re paying the individual. Where this happens the individual’s rate of pay must be increased so that it’s at least equal to or greater than the revised and new modern award minimum rates. 

For example, if you are currently paying a part time level 4 Receptionist $27 per hour, which is $0.82 above the 2022-2023 rate of pay and the new minimum rate of pay is greater than $27 then you must increase the persons rate of pay so that it is equal to or greater than the new minimum rate.  

  • Paid a salary or composite rate of pay, then it is important these amounts and inclusions are reviewed to ensure the better off overall test (BOOT) is satisfied and you’re paying staff correctly.  

For example, if you are currently paying staff a composite rate comprising of the award minimum rate + laundry allowance + annual leave loading, then you must in ensure the current amount your paying is equal to or greater than the new award minimum rate + new laundry allowance amount + revised annual leave loading calculations.   

  • Paid under an individual flexibility agreement, these calculations must be reviewed to ensure the BOOT is satisfied.  

Practices and businesses can, at their discretion, choose to increase rates of pay of staff who are already paid above the new and revised minimum rates of pay and BOOT assessment as a gesture of goodwill and retention strategy.  

Now that we know rates are changing and by what percentage, HIES will prepare wages summaries for Members that set out the ordinary rates of pay for HPSS and nursing staff. These will be posted to members over the coming weeks.  

Got Questions?  

Contact the HIES team if you have any questions about this wage increase or next steps you might need to take at your practice. You can email us at [email protected] or call us on 07 3386 6488.   

Note | The Annual Wage Review decision applies to all private sector employers and employees, except those in Western Australia who operate as sole traders, partnerships or other unincorporated entities.