Recently, The Fair Work Commission (FWC) announced the decision to increase the minimum wage and Modern Award pay rates by 5.75% as a result of the Annual Wage Review 2022-23.
The new Modern Award pay rates are to be paid from the first full pay period on or after 1 July 2023.
There is no obligation to increase the salaries of employees who are already paid more than the new Modern Award. However, no employee covered by a Modern Award should be paid less than the new Modern Award minimum rates.
Enterprise Agreements – Employee
Employers have an obligation to employees to ensure that those covered under an Enterprise Bargaining Agreement are not paid under the base rate of the Modern Award. As a result, some employers may need to increase their base rate to employees to match the base rate in the relevant award. Employers need to ensure they review their EBA’s against the Modern Award Rates to ensure legal requirements are met.
Superannuation Guarantee Charge (SGC) – Employer
From 1 July 2023, employers must increase the minimum employer superannuation contribution for their employees from 10.5% to 11%.
This increase applies to any salary or wages payment made on or after 1 July, including where the salary or wages payment covers the period of work undertaken before 1 July 2023.
Further Information on the Annual Wage Review 2022-23
Visit the website to find out more about the FWC determinations for the Annual Wage Review 2022-23 including updated wages tables for the modern awards.
If employers are unsure about the modern award changes and how to apply them, please contact the team at MGI for assistance.
