Starting 1 July 2024, the National Minimum Wage in Australia will increase by 3.75%. This adjustment is part of the ongoing efforts to ensure workers’ fair compensation and keep pace with living costs.
NEW WAGE RATES
With this increase, the new National Minimum Wage will be:
- $915.90 per week (based on a standard 38-hour work week)
- $24.10 per hour
IMPLEMENTATION DATE
The new wage rates will take effect from the first full pay period on or after 1 July 2024. For instance, if your weekly pay period starts on a Wednesday, the new rates will apply starting from Wednesday, 3 July 2024.
WHO IS AFFECTED?
The National Minimum Wage applies to employees who are not covered by an award or registered agreement. It sets the baseline pay rate that employers must adhere to for these workers.
COMPLIANCE AND CONSIDERATIONS
Employers must ensure they are compliant with the new wage rates by the specified date. Failure to do so can result in penalties and back-pay obligations. Here are a few steps employers can take to ensure compliance:
- Review Payroll Systems: Update payroll systems to reflect the new rates from the first full pay period on or after 1 July 2024.
- Communicate with Employees: Inform affected employees about the wage increase and how it will be implemented.
- Adjust Budgets: Consider the impact of the wage increase on your business’s financial planning and adjust budgets accordingly.
- Monitor Compliance: Ensure all relevant employment contracts are updated to reflect the new minimum wage where applicable.
IMPORTANCE OF THE INCREASE
This increase in the National Minimum Wage is essential for supporting the financial well-being of low-paid workers. It helps ensure that wages keep pace with inflation and the rising cost of living, providing many Australians with a more sustainable standard of living. By staying informed and proactive, employers can ensure they meet their obligations and support fair and equitable compensation for their workforce. This increase in the National Minimum Wage is a positive step towards maintaining fair work standards nationwide.
By adopting these approaches, businesses can fulfill their responsibilities and contribute to their employees’ long-term financial well-being. Need help? Consult a reliable, licensed advisor.