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Increases to National Minimum Wage, Modern Award Rates & Employer Superannuation Contributions


The increases to the Modern Award rates of pay and the National Minimum Wage are now effective from the first full pay period starting on or after 1 July 2023 as follows:


  • Modern Award Rate Increases: The Modern Award minimum wage rates will increase by 5.75%. This increase will apply from the first full pay period on or after 1 July 2023.

  • National Minimum Wage Increase: The National Minimum Wage will be increased to $882.80 per week, or $23.23 per hour. This increase will apply from the first full pay period on or after 1 July 2023. The National Minimum Wage will be aligned to the C13 classification level, rather than the C14 classification level. The C13 classification is the lowest classification level applicable to ongoing employment in most Modern Awards, so with that classification alignment, and a 5.75% increase, this equates to an 8.6% increase to the National Minimum Wage.

The Fair Work Ombudsman has now released the updated Modern Award Pay Guides which will apply from the first full pay period starting on or after 1 July 2023: Pay guides - Fair Work Ombudsman Pay guides - Fair Work Ombudsman


Remember that you will need to check the relevant minimum rates of pay, as well as other monetary rates payable under applicable Modern Awards, including all allowances, loadings etc, and review your wage arrangements in place, and implement the required wage increases from the first full pay period starting on or after 1 July 2023.


Employer superannuation contributions have now also increased from 10.5% to 11% on and from 1 July 2023.


There are also a range of other IR changes now in place, including for Paid and Unpaid Parental Leave, Zombie Agreements and Enterprise Bargaining, with further upcoming changes to the Professional Employees Award 2020 that will come into place from first full pay period on or after 16 September 2023, and limitations on the use of fixed-term contracts coming into place on 6 December 2023, that businesses should start planning for.


Further, the High-Income Threshold under the Fair Work Act 2009 (Cth) has also now been increased to $167,500 effective from 1 July 2023. This means the compensation limit for unfair dismissal claims will now be limited to $83,750 for dismissals occurring on or after 1 July 2023.


If you have any questions about the impact of these wage increases, or what your business needs to do in light of the raft of recent and upcoming IR changes still to come, please contact IR Legal Solutions to discuss.


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