Australia’s lowest-paid workers have cause for celebration as the Fair Work Commission (FWC) announces a 3.75% increase in the National Minimum Wage and minimum award wages.
This adjustment takes effect from July 1, 2024, bringing the National Minimum Wage to $915.90 per week or $24.10 per hour. The annual wage review ensures fair compensation amidst economic changes and inflation.
Details of the Wage Increase
The new wage rates will be implemented starting from the first full pay period on or after July 1, 2024. For example, if your weekly pay period begins on a Wednesday, the new rates will apply from Wednesday, July 3, 2024.
The increase applies to employees not covered by an award or registered agreement, providing a minimum pay rate as stipulated by the Fair Work Act 2009.
Understanding the Increase
- Effective Date: The new minimum wage came into effect on July 1, 2024.
- Rate Increase: The National Minimum Wage has risen to $24.10 per hour or $915.90 per week.
- Award Wages: Minimum wages set by industry awards (Modern Awards) also increased by 3.75%.
Impact on Work Visa Applicants
A higher minimum wage translates to increased job opportunities for skilled workers on work visas. Employers offering salaries that meet or exceed the new minimum wage will be in a stronger position to attract and sponsor skilled overseas workers. This is particularly relevant for occupations covered by Modern Awards, which set minimum pay rates and conditions for specific industries.
Compliance and Eligibility
Employers sponsoring work visas must adhere to the updated wage requirements, ensuring compliance with Australian labour laws. This may lead to more rigorous checks during the visa application process, ensuring that all employment conditions meet the new standards.
Who Benefits?
This increase primarily benefits low-paid workers in Australia, including those employed under the National Minimum Wage or the minimum rates of their relevant Modern Award. This could encompass workers in sectors like retail, hospitality, cleaning, and social care.