Each year an expert panel of the Fair Work Commission conducts a review of minimum rates of pay and Award conditions. This generally takes place from March to June with any changes or increases announced and generally enforced from the first full pay period on or after 1 July.
In 2023, the Fair Work Commission (FWC) increased Award and minimum rates of pay by 5.75 per cent – a considerable factor for payroll and operational budgets for Australian businesses.
Importantly, it’s not just the Award pay rates that increase or change in this annual process, it’s also the resulting penalty rates, loadings and allowances. Thankfully, these are detailed for every industry Award in a dedicated Pay Guide.
What are Pay Guides?
The pay guides are an excellent free resource provided by Fair Work, that detail the current minimum pay rates for full-time, part-time and casual employees in an Award. They also include all the monetary allowances and the most frequently used penalty rates for each classification.
Pay guides don’t apply when a business has a registered agreement and the employee is covered by it.
It’s very important that businesses take care to access, budget for and stay across the most up to date pay guides (and rates) for their business.
What does this mean for you?
As part of your end of financial year preparations, it’s essential that increased labour costs are part of your new year budgeting and planning.
The FCHR team strongly recommend our members and clients review all rates and conditions across their workforce, at least annually. This is particularly important if you set your pay rates by the Award relevant to your industry.
Not to worry – we’ve got you covered.
On July 1 and 2 each year, the team of HR experts at Full Circle assess the Awards which may apply to your business and at no cost to you, we provide you with the new Pay Guides and minimum rates for your business.
This enables your internal payroll or finance team members to quickly and confidently update payroll details to prevent any back pay issues or underpayment risk.
Not sure about your Award? Every award has information about who is covered by it. You can visit the Awards page if you’re not sure which one applies to you.
Know your Award? You can download your current pay guide here or use the Pay and Conditions calculator to confirm your current rates.
Your next step
Full Circle HR Members: We’ll be in touch with you in the coming weeks to assist you with an update on the changes that apply to you in your business.
Non-members:
Need a little help determining your Award, checking your pay rates or implementing any updates after July 1? Book some time with our team by contacting Jess at hello@fullcirclehr.com.au or submit your enquiry here.