Important Points regarding Australia’s Minimum Wage Increase in 2024

Australian workers’ minimum wage will rise by 3.75%, according to the Fair Work Commission.
The new minimum wage, which is based on a 38-hour workweek, is $24.10 per hour, or $913.91 per week.
These modifications will take effect on July 1st, 2024.

The minimum wage for Australian workers will increase by 3.75%, according to the Fair Work Commission of Australia. Thus, based on a 38-hour workweek, the minimum wage will rise to $24.10 per hour and $915.91 per week as of July 1, 2024. This increase in the minimum wage ($33 per week) will affect 2.6 million people, or 20.7% of the labor force in the country. The decision was made taking into account the level of living, rising living expenses, and labor force participation.

Australian workers applaud the increase in the minimum wage, but numerous small businesses and well-known individuals have opposed it. Adam Hatcher, the commission president, expressed his disapproval of the ruling by saying:
“As labor productivity is no higher than it was four years ago and productivity growth has only recently returned to positive territory, it is not appropriate at this time to increase award wages by any amount significantly above the inflation rate.”

According to the May federal budget, consumer price inflation is expected to reach a peak of 3.5% at the end of the current fiscal year and then decline to 2.75% by June of 2025. The Reserve Bank’s most recent projections state that annual inflation will be 3.2% at this time next year and 3.8% for the current quarter.

Additionally, the commission voiced concern on Monday that sectors of the economy that typically employ minimum-wage workers might be negatively impacted by a greater boost.

Written by

Sanat Gupta
Registered Migration Agent
MARN 1466755

Date: 07 June 2024