Annual Wage Review 2023-24 — $23.23/hr NMW

Fair Work Commission decision [2023] FWCFB 3500 (Annual Wage Review 2022-23), handed down June 2023, effective 1 July 2023.

What was the 2023-24 Annual Wage Review decision?

The Fair Work Commission's 2023-24 Annual Wage Review decision, handed down June 2023 ([2023] FWCFB 3500 (Annual Wage Review 2022-23)), lifted the National Minimum Wage by 8.65% to $23.23/hr ($882.80 for a 38-hour week) and modern award minimum rates by 5.75%, effective 1 July 2023.

5.75% to all modern award minimum rates. NMW lifted separately to align with C13 of the Manufacturing Award (effectively 8.65% from the previous NMW). Award rates flowed through to ~2.6 million workers; the higher NMW affected ~180,000 workers directly on the NMW classification.

The Panel's reasoning

• Real wages of low-paid workers had fallen significantly during the 2022 inflation spike. The Panel acted to limit further real-wage erosion.
• The decision separated the NMW from the C14 alignment in the Manufacturing Award and re-aligned to C13 (a higher rate). This is what produced the 8.65% NMW jump while modern awards generally rose 5.75%.
• The Panel acknowledged the rise would not eliminate the real-wage decline of 2022 but would slow it.
• Critics: ACCI argued the rise would re-inflate the economy. Unions: ACTU argued for 7% to fully cover CPI.

Economic context

Annual CPI was 7.0% to March 2023 — the highest in three decades. The Panel weighs CPI, labour-market conditions, productivity, relative living standards of award-reliant employees, and submissions from the Federal Government, ACTU, ACCI, ABI and Australian Industry Group when reaching its decision.

Who decided this?

The expert panel of the Fair Work Commission, chaired by President Justice Iain Ross AO (final review before retirement), with Vice President Catanzariti, Deputy President Wright, Commissioner Hampton, expert panel. The expert panel meets between March and May each year, hears submissions, and publishes its determination in early June.

What this meant for your pay

If you were paid the National Minimum Wage in 2023-24, your gross weekly pay for a 38-hour week was $882.80 (up from the previous $21.38/hr rate). If you were paid a modern award rate, your minimum hourly rate rose by 5.75% from the previous year.

If you were paid above the award minimum, your employer was not required to pass on the wage review increase — though many do, particularly where the award rate has now caught up to your above-award rate.

To calculate the exact impact on your pay, use the Annual Wage Review impact calculator or ask FairWork Mate AI about your specific award and classification.

Source

Fair Work Commission Annual Wage Review 2023-24 decision, [2023] FWCFB 3500 (Annual Wage Review 2022-23). Full decision available at fwc.gov.au/annual-wage-review.