As the new financial year rolls around, it’s time for a refresh of some of the key figures that are relevant to human resources teams across the country. With minimum wages increasing across the country, these figures need to be updated across your organisation if you’re looking to remain compliant in FY25.
Annual Wage Review Decision 2024
The Fair Work Commission has decided to increase both the National Minimum Wage and all modern award minimum wage rates by 3.75%.
While the Review directly impacts the wage rates in all modern awards, there is a flow on impact for all industrial instruments. From 1 July 2024, employers will need to ensure that all modern award covered employees are paid the revised minimum wage, even where an enterprise agreement applies. The increase was made with primary consideration to:
- the forecasted inflation rate returning to below 3% in 2025; and
- the cost-of-living pressures.
Changes as of 1 July 2024
Now is a good time to review all employment contracts to ensure consistency with the following changes that came into effect on 1 July 2024:
- the minimum weekly wage increased to $915.90;
- the minimum hourly rate increased to $24.10 for permanent employees and $30.13 (inclusive of the 25% casual loading) for casual employees;
- the superannuation guarantee rate has increased from 11% to 11.5%;
- the high-income threshold has increased from $167,500 to $175,000; and
- the compensation cap for unfair dismissal claims is set at $87,500.
Next steps
Employers and HR teams need to stay informed and proactive in managing their employment practices. It is time to review current contracts, update payroll systems and ensure compliance with these new regulations.
For further guidance and support, reach out to James Simpson and Timothy Zahara who can help you navigate these changes.
