Wage Increase & Superannuation Guarantee Rate Rise | Ulton

On 2 June 2023, the Fair Work Commission (FWC) handed down its decision in the Annual Wage Review for 2022-23.

The national minimum wage and the modern award minimum wages will increase by 5.75% effective 1 July 2023, as set out below:

the current weekly minimum wage increases to $882.80 (an increase of $70.20 per week)
the current hourly minimum wage increases to $21.38 to $23.23 (an increase of $1.85 per hour)
a 5.75% increase will apply to all modern award minimum wages across the board
the current casual loading figure will remain at 25%

The superannuation guarantee rate increases from 10.5% to 11% effective 1 July 2023.

It’s a good time to review your payroll to make sure that:

employees paid minimum wages under a modern award are paid no less than the minimum pay rates for their job classification under the applicable modern award. This includes casual and other loadings, overtime and allowances that are calculated by reference to the modern award minimum pay rates
employees paid an annualised salary arrangement under a modern award are reviewed and reconciled to make sure you do not owe a back payment in wages (for any additional hours worked) by an employee. Apply the 5.75% increase when calculating an annualised salary arrangement for the new financial year.
Award/agreement-free employees not covered by a modern award or enterprise agreement, from 1 July 2023, permanent employees will be entitled to the minimum weekly wage of $882.80, or $23.23 per hour (no less) for working a 38-hour week. For your casual employees, add the 25% casual loading.

The new pay guides for modern awards will be available from the Fair Work Ombudsman’s website soon.

business-owner_working-in-factor

Business Advisory & Consulting

19 min read

Excess inventory is the stock a business holds beyond what it needs to meet current demand. It’s the unsold goods sittin...

Business Advisory & Consulting

15 min read

You can study every dimension of a business’s on-paper presence, throw yourself into analysing their market, comb throug...

CFO Business Advisory & Consulting

19 min read

The management meetings—the two-hour session that appears on our clients’ calendars every single month without fail—is o...