The Fair Work Commission has announced that the national minimum wage in Australia will increase from 1 July 2023. Currently, the minimum wage sits at $21.38 per hour or $812.60 per 38-hour work week (before tax). From 1 July 2023, the minimum wage will rise to $23.23 per hour or $882.80 per 38-hour work week (before tax).
While it’s being reported that the minimum wage is increasing by 5.75 per cent, national minimum wage earners will get a boost of 8.6 per cent. This is because the government is readjusting the minimum wage to align with a higher wage classification. Across different award rates, you’ll find different levels/classifications of pay, many of which are classed between C-2 and C-14, with C-14 being the lowest.
Although the national minimum wage used to align with the C-14 rate ($21.38 per hour), it is being bumped up to the C-13 rate ($21.97). As of 1 July 2023, it is this C-13 rate that will get a 5.75 per cent boost, creating the new minimum wage.
Keeping up with the cost of living
The announcement comes as people in Australia grapple with the growing cost of living. As of March 2023, Australia’s annual inflation rate is sitting around 7 per cent, with new properties, domestic travel and accommodation, and electricity prices being the biggest contributors.
Inflation was also a major priority in this year’s federal budget, in which a $14.6 billion cost-of-living relief package was announced. In it, The Government urged the Fair Work Commission to ensure that the wages of low‑paid workers wouldn’t go backwards. It also reinforced its commitment to adequately paying workers in aged care, which is one of Australia’s most critical sectors.
Learn more about minimum pay and cost of living in Australia
The Pay and Conditions Tool (P.A.C.T) is a super valuable tool offered by the Fair Work Ombudsman (FWO). You can use this interactive tool to calculate your pay, identify pay rates for shift hours (i.e. if you’re eligible for penalties) and calculate your leave entitlements.
You can also check out the Awards webpage to learn more about the modern awards system in Australia.
To get a better understanding of the cost of living in different Australian cities, check out our Cost of Living Calculator.