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On Monday the Fair Work Commission (FWC) announced an increase to minimum wages following their expert panel’s Annual Wage Review 2023–24.
The FWC determined to increase the national minimum wage and the minimum rates of pay in all modern awards by 3.75 per cent. This includes the two principal awards that impact the real estate industry, being the Real Estate Industry Award 2020 and the Clerks - Private Sector Award 2020.
Does everybody get an increase?
If you are paying an employee a rate of pay which exceeds the new minimum award rate, you are permitted to absorb the increase. However, you must ensure the employee continues to receive a wage equal to or above the minimum wage prescribed by the relevant award for the employee’s classification.
Have allowances increased as well?
The Fair Work Commission’s determination regarding allowances has not yet been finalised, however based on previous years, it is expected that there will be a modest increase to allowances under both awards. This might include motor vehicle, mobile phone, uniform, meal and first-aid allowances.
Increase to compulsory superannuation
The compulsory employer superannuation rate will increase from the current 11 per cent to 11.5 per cent on 1 July 2024. This means from 1 July 2024, employers will be required to make superannuation contributions on behalf of employees at the rate of 11.5 per cent of the employee's “ordinary time earnings”.
All employees must receive the superannuation increase. However, subject to the way a salary package or an incentive-based arrangement is structured, it might be possible to reallocate the increase. Whether it is possible to reallocate the increase will be determined by the written agreement, and employers should seek professional advice if they are unsure.
When do the increases start?
The increased wage rates, superannuation and allowances are operative from the first full pay period commencing on or after 1 July 2024.
Bryan Wilcox is the CEO of the Real Estate Employers’ Federation (REEF).
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