• The Fair Work Commission (FWC)’s decision on minimum pay increases the national minimum wage by approximately 8.6% and minimum modern award rates by 5.75%.
• The superannuation guarantee rate is 11% effective from 1 July 2023. The superannuation rate is currently scheduled to progressively increase to 12% by July 2025.
• The high income threshold is $167,500 effective from 1 July 2023.
• It is now unlawful to include pay secrecy clauses in new (or varied) employment agreements.
• Employers now have a positive duty to take reasonable and proportionate measures to eliminate sex discrimination.
• Changes have been made to the Fair Work Act 2009 (Cth) (FW Act) provisions relating to requests for flexible working arrangements.
ISSUE 1: INCREASE TO AUSTRALIAN NATIONAL MINIMUM WAGE AND MODERN AWARD RATES
The FWC has granted an approximate 8.6% increase to the national minimum wage and a 5.75% increase to the minimum pay rates under modern awards. The weekly national minimum wage is $882.80 per week (based on a 38 hour week), or $23.23 per hour, with effect from 1 July 2023. The national minimum wage will apply to any employee who is not covered by a modern award.
The increases will operate from 1 July 2023 and take effect in relation to a particular employee on the start of the employee’s first full pay period on or after 1 July 2023.
ISSUE 2: INCREASE TO MINIMUM AUSTRALIAN SUPERANNUATION CONTRIBUTIONS
Employers’ minimum superannuation contribution rates will be as follows:
• From 1 July 2023 – 11%;
• From 1 July 2024 – 11.5%;
• From 1 July 2025 – 12%.
