The decision to increase the National Minimum Wage and Award Minimum Wages was recently handed down

The Fair Work Commission (FWC) has announced a 3.75 percent increase to the national minimum wage (NMW) and award minimum wages following its 2023-2024 annual wage review.
The commencement of the increase will apply from the first full pay period starting on or after the 1st of July 2024.

Award Employees
Relevantly, increases for the Vehicle Repair, Services and Retail Award, Clerks Private Sector Award and Manufacturing and Associated Industries and Occupations Award will operate from the 1st of July 2024.
Updated pay guides are available to AAAA members through the member portal or by contacting Employer Assist for further clarification and assistance.
If you are already paying your employees more than the award minimum rate, you may be able to absorb the increase into your current pay rates depending on the particular employment arrangements.
You can contact Employer Assist for specific advice on whether absorbing an increase is possible based on individual circumstances.

Enterprise Agreements
If a registered agreement applies to the workplace, you will need to ensure that the agreement minimum rates are not less than the award minimum rates or the NMW (whichever would apply but for the agreement applying).
If the agreement minimum rates are less than the employee would receive under the award that would otherwise have coverage, the agreement will have effect as if the agreement rate were equal to the base award rate.
Similarly, if the agreement minimum rates are less than a non-award covered employee would otherwise receive under the NMW order, the agreement will have effect as if the agreement rate were equal to the NMW.
If you require assistance in confirming whether you are paying the correct minimum rates, please contact Employer Assist.

Award Free Employees
The new NMW that will apply from the first full pay period starting on or after the 1st of July 2024 will be $915.90 per week or $24.10 per hour.
The NMW applies to employees who are not covered by an award or registered agreement.
If you are unsure whether your employees are covered by an award or registered agreement, please contact Employer Assist for advice on your individual circumstances.

Superannuation
The Superannuation Guarantee rate is set to increase from the current rate of 11 percent to 11.5 percent on the 1st of July 2024.
The Superannuation Guarantee rate will continue to increase each year in 0.5 percent increments until it reaches 12 percent in 2025.

Next steps
If you have not done so already, Employer Assist recommends employers review current wage arrangements to determine whether the increase can be absorbed or if wages need to be adjusted to satisfy the minimum requirements.
Any employer that uses an “all-inclusive” salary rate should ensure that the salary is sufficient to cover the employee’s minimum entitlements each pay period, considering the increased entitlements from the 1st of July 2024, and that the employment contract contains a properly drafted set off clause.
It is important to note that serious penalties apply if you are found to be underpaying your employees.
To mitigate the risk of underpayments, it is recommended that employers regularly conduct compliance checks to ensure minimum wage and superannuation requirements are being met.
Further, it is an ideal time to review and update existing employment contracts or implement new ones.
Employer Assist can review employment contracts and provide advice on any amendments required for compliance or on improvements that can be made. It can also supply template employment contracts tailored to suit individual requirements.

AAAA Member Benefits
If you require assistance, contact Employer Assist on 1300 735 306 or aaaa@employerassist.com.au

This article is intended for information purposes only and should not be regarded as legal advice. Please contact Employer Assist for advice.