Minimum Wage Increase 2024: What You Need To Know

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Published by Preston Law on 04/06/2024

A number of changes have been made to workplace relations and came into effect from 1 July 2024. Employers and employees alike must be aware of the changes and employers, in particular, must pay careful attention to ensure they are compliant with the changes and avoid penalties.

Minimum wage increase

The Fair Work Commission has announced today that the National Minimum Wage and all modern award minimum rates will increase by 3.75%. The new National Minimum wage will equate to $915.90 per week, or $24.10 per hour.

This increase will be in effect from the 1 July 2024, or the first full pay period on or after 1 July 2024.

Changes to employer superannuation contributions

The minimum superannuation guarantee will increase by 0.5% on 1 July 2024, to 11.5%

The superannuation contribution rate will continue to increase by half a per cent each year until July 2025, by which point employer superannuation contributions will reach 12%. Eligible employees should check their pay slips to ensure 11.5% of their salary is being contributed to their superannuation.

For employees whose superannuation forms part of their salary package, the extra half a per cent will cause a decrease in their take-home pay, whereas employees who earn a base salary plus super will not have their take-home pay affected by the increase.

How can employers ensure they are compliant with the changes?

To ensure that you meet your obligations come 1 July 2024, employers should conduct a salary or pay review to bring all employees in line with the national minimum wage or modern award rates to ensure none of them are being underpaid. Employers should also increase their superannuation contributions to 11.5% for all eligible employees.

If you require clarity on any of the changes to workplace relations or need assistance implementing the changes, contact our office today and speak with an experienced employment lawyer.

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