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The minimum wage will increase 3.75 percent on July 1, from $23.23 an hour to $24.10.
For someone working full-time for 38 hours, that equates to an extra $33 a week, although, as the FWC notes, the majority of minimum wage workers will earn less than that.
“Employees who rely on modern minimum wage rates and are therefore directly affected by our decision are significantly different from the workforce as a whole,” it said.
“They are mostly part-time, mostly women and almost half are temporary workers. They are also much more likely to be underpaid.”
The FWC said wages related to the cost of living faced by households were the main consideration in making this decision and that the increase was in line with forecasts for inflation to return to target next year.
“Current minimum wages remain lower in real terms than they were five years ago, despite last year’s 5.75 percent increase, and wage-dependent employee households are under financial stress as a result,” the commission wrote .
“This has defied this review, leading to further reductions in real rates of remuneration. At the same time, we believe that it is not appropriate at this time to increase remuneration by any amount significantly above the level of inflation…
“The 3.75 percent increase we have identified is broadly in line with projected economy-wide wage growth in 2024 and will make only a modest contribution to the total amount of wage growth in 2024.”
“Therefore, we consider this increase to be in line with the projected return of the inflation level to below 3 percent in 2025.”
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He said the upcoming Stage 3 tax cut, which also starts on July 1, and other cost-of-living measures announced in the federal budget factored into his decision.
The minimum wage increase affects just under 21 per cent of Australia’s total workforce – about 2.6 million people – although the FWC said only about 11 per cent of national wages were affected by pay rates.
Last year, the commission increased the minimum wage by 5.75 percent, following a 5.2 percent increase in 2022.
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