What’s the increase?

As of 1 July 2024, the hourly minimum rate of pay will be raised by 3.75%. That is:

  • An increase from $23.23 an hour to $24.10; or
  • Approximately an increase of $33 per week (for a full-time employee); or
  • Approximately an additional $1,716 per year (for a full-time employee).

Whether your business pays an employee strictly under the modern award (‘Award’) rates, or whether you’ve opted to pay your staff an annualised salary, it’s the employer’s responsibility to ensure that an employee is not underpaid.

What this means for your business?

Prior to the commencement of the new pending increases, you should review the contracts of employments of your workforce to ensure that the employee’s wages or salary are in line with the increase. This is particularly the case if you if you implemented the contracts of employment for your staff/workforce a few years back, when the hourly rate would have been considerably lower at the time. Not updating the hourly rate (or incorporating any of the previous years increases) will likely result in an underpayment leaving your business open to penalties for breach of the Fair Work Act and any Award covering the employee.

Reach out to us to perform a quick audit or employment health check to ensure that the rates being paid to your staff are compliant with the new increases.

Daniel Le