2023 Fair Work Commission wage increase
The decision of the Fair Work Commission (FWC) Expert Panel for annual wage reviews has increased the National Minimum Wage and the minimum rates of pay in modern awards by 5.75%. The FWC has ended the alignment between the NMW and the C14 wage rate (a training/introductory rate) in some modern awards. The NMW increase has now been applied to the C13 wage rate and this has resulted in an effective increase to the NMW of 8.6%.
This will take effect from the first full pay period commencing on or after 1 July 2023. The National Minimum Wage has increased to $882.80 per week, or $23.23 per hour. A summary of the decision can be found here.
Historic FWC wage increases are set out below for comparison.
| 1 July 2023 | 5.75% |
| 1 July 2022 | National minimum wage increase: 5.2% |
| Modern award wage increase: 4.6% or $40 per week (whichever is greater) | |
| 1 July 2021 | 2.5% |
| 1 November 2020 | 1.75% |
| 1 July 2019 | 3% |
| 1 July 2018 | 3.5% |
| 1 July 2017 | 3.3% |
| 1 July 2016 | 2.4% |
NT Councils and the Shires of Christmas Island and Cocos (Keeling) Islands
This increase will need to be passed on by Local Governments that:
- pay the minimum rates in the Local Government Industry Award 2020 (LGIA), and/or
- have Federal enterprise agreements that incorporate increases to modern award wage rates.
If you apply the LGIA but pay wage rates higher than the minimum LGIA rates, you will need to review your internal policies and procedures and contracts of employment to determine when and how your Local Government usually provides wage increases.
The LGIA contains Schedules B and C which summarise the hourly rates of pay (including penalty and overtime rates) and allowances. The LGIA will be updated with the new rates of pay closer to 1 July 2023.
All other WA Local Governments
This increase will not apply to WA Local Governments that are in the State industrial relations system, unless they have a clause in an industrial agreement that provides FWC increases will be passed on to employees.
Local Governments operating in the State industrial relations system will be informed when the 2023 State Wage Case General Order is published by the Western Australian Industrial Relations Commission (WAIRC) later this month (noting in 2022 the WAIRC decision was released on 23 June 2022). The WAIRC also considers the decision of the FWC Expert Panel before releasing its decision.
Superannuation guarantee increase from 1 July 2023
A reminder that the next increase to the superannuation guarantee rate is planned for 1 July 2023, where it will increase by 0.5% to 11%, and will eventually reach 12% by 1 July 2025. For more information please see the ATO website here.
Register now for the WALGA People and Culture Seminar 2023
Registrations are open for the 2023 WALGA People and Culture Seminar! Register early to make sure you don't miss out as places are limited. The full program will be announced
soon.
Date: Thursday, 27 July 2023
Time: 8.30am to 5.00pm
Venue: Perth Convention and Exhibition Centre, 21 Mounts Bay Road, Perth WA 6000
Register here
WA bargaining online meeting - lunch and share
WALGA ER is trialing an online meeting for WA LG people and culture professionals to share their current bargaining experiences in the State IR framework, logs of claims from unions and employees and any other issues relating to union relationships and right of entry.
Date: Tuesday, 27 June 2023
Time: 12.30pm to 1.30pm
Register here
Upcoming training
Register now for our new and revised training courses:
- State Employment Law Essentials (new places released for in person training on Friday 28 July 2023)
- Understanding and Applying the Local Government Industry Award 2020 - WA
- Understanding and Applying the Local Government Industry Award 2020 - NT
- HR Toolkit for Managers
If you have any questions about this alert, please email WALGA Employee Relations or call 1300 366 956.
