For the upcoming fiscal year starting July 1, 2024, the Fair Work Commission has opted to raise both the National Minimum Wage and all modern award minimum wage rates by 3.75 per cent.
The cost-of-living pressures were a primary consideration in this decision-making behind the increase, according to the Fair Work Commission.
These pressures affect modern-award-reliant employees, particularly those who are low-paid and live in low-income households.
The National Minimum Wage sets a baseline pay for those not covered by modern awards or enterprise agreements, affecting a minority of employees within the national industrial relations system.
The review of modern award minimum wages is pivotal, with 121 modern awards and a handful of enterprise awards, each sets minimum wage rates based on industry or occupation, considering the National Minimum Wage.
The commission said the 3.75 per cent increase aligns with forecasted wage growth in 2024 and will modestly contribute to overall wage growth for the year.
They consider this increase as consistent with the forecast return of the inflation rate to below 3 per cent in 2025.