Fair Work Commission Wage Decision 2024

3 June 2024

On Monday 3 June 2024, the Fair Work Commission handed down the 2024 wage decision, increasing the national minimum wage and base rates of pay in modern awards. Tom Earls from Fair Work Lawyers provides a summary of the decision. The ACA will update relevant Award pay rates as soon as possible.

For details on the decision, see the Fair Work Commission summary.

Wage increase

The Fair Work Commission has determined that modern award rates and the National Minimum Wage will increase by 3.75%.

Apprentice and trainee rates will increase by proportionate amounts.

The decision does not expressly deal with how allowances will change. In previous years, skill and disability allowances were increased by the same percentage and expense-related allowances by the applicable CPI measure. We anticipate this will be the same but are unable to confirm this.

Operational date

The Commission has decided that this year’s increase will apply first full pay period on or after 1 July 2024.

Who does this affect?

This decision affects all employees who a modern award applies to. If you have award-based employees who are paid above award rates, the ‘absorption’ principle means that you do not have to increase above-award payments unless the new award minimum is higher than the employee’s current rate, in which case you must pay at least the new minimum.

Employers who have enterprise agreements in place will need to ensure that the base rate of pay is at least equal to the new minimum. This requirement only applies to the base rate of pay and does not extend to allowances, penalty rates or loadings.

NB: even if an agreement has expired, it remains in force until it is replaced by a new one or the Commission terminates the agreement. Note that as of 7 December 2023 all agreements made prior to 1 January 2010 have ceased to apply.

Need more information

The ACA will update relevant Award pay rates as soon as possible.

If you have further questions, contact Fair Work Lawyers.