Insights to the increase in Award Minimum Rates of Pay

Award Minimum Wages will increase by 5.75%, operative from 1 July 2023, applicable to employees under both the Health Professional and Support Service Award 2020 and the Nurses Award 2020. 

In the Fair Work Commission’s determination, they outlined some key factors in the current economy and workforce that contributed to their percentage increase. Our key interpretations of the findings are expressed below.  

Weakening in the current labour market
The commission made note that a moderating factor taken into account included the forthcoming increase to the Superannuation Guarantee contribution rate (increased to 11% as of 1 July 2023), and the effect an expected weakening in the labour market may have on casual employees. 

Potential gender undervaluation
They identified that there are significant issues concerning the potential gender undervaluation of work in modern award minimum wage rates applying to female-dominated industries and occupations. In a report released by the Fair Work Commission in May 2023, the Health Professionals and Support Services Award 2020 was listed as one of the top 10 most common awards with female employees. The proportion of female employees for this award being 91.2%. 

The commission have stated the scope and timing of the present review is essentially their first step to addressing these inequalities. These inequalities will also be at the forefront of future reviews and commission proceedings. 

The AMA Queensland Workplace Relations 2023-24 Rates of Pay Guide was sent to Toolkit and Workplace Relations News subscribers on 21 June 2023. If you would like to become a subscriber, please find more information here. 

	Workplace Relations Support  Workplace Relations Support can help members with queries and guidance on how the updated rates of pay may affect their staff. You can contact us via phone (07) 3872 2222 and email support workplacerelations@amaq.com.au.
	Workplace Relations Toolkit Workplace Relations Toolkit subscribers get first access to any award and pay rate changes that happen throughout their subscription. Toolkit subscribers are provided with templates that can be used when an employee’s hourly rate of pay changes or a variation in an employees contracted hours occurs.
	Workplace Relations Consultancy Workplace Relations Consultancy can review contracts you already have in place and offer guidance on relevant updates or changes that may need to be applied to remain compliant with legislation.