Fair Work Commission 2024 Annual Wage Review

The Fair Work Commission’s (FWC) Annual Wage Review was announced yesterday.

The Annual Wage Review is conducted in accordance with section 285 of the Fair Work Act 2009 (Cth) and requires the FWC to:

1. Review and make a national minimum wage order
2. Review modern award minimum wages (there are 121 modern awards which apply to employees in the national industrial relations system).

The FWC decided to increase the national minimum wage and all modern award minimum wages by 3.75% effective from 1 July 2024.

In determining this level of increase, the primary consideration of the FWC was the cost of living considerations which effect low income employees. The FWC noted that despite this increase, Modern award minimum wages remain, in real terms, lower than they were five years ago, notwithstanding last year’s increase of 5.75%, and employee households reliant on award wages are undergoing financial stress as a result.

The FWC also determined to establish a program for the timely resolution of gender undervaluation issues arising with respect of certain modern awards. Modern awards and classifications applicable to early childhood education and care workers, disability home care workers, and other social and community healthcare workers, dental assistants, medical technicians, psychologists, pharmacists and other healthcare professionals, will be the subject of Commission initiated proceedings to examine and address gender undervaluation. These proceedings are to commence shortly and to be completed by the time of the next review.