The Fair Work Commission (FWC) has released its Annual Wage Review Decision for the period 2022 – 2023. Set out below are the key elements of the FWC’s decision.
ANNUAL WAGE REVIEW 2022-23 BACKGROUND TO THE 2022 – 2023 ANNUAL WAGE REVIEW DECISION
The annual wage review (Review) is conducted pursuant to section 285 of the Fair Work Act 2009 (Cth) (FW Act). In conducting its review, the FWC is required to:
o review, and make, the national minimum wage (NMW) order; and
o review modern award minimum wages, and may vary modern awards to change or revoke modern award minimum wages.
SUMMARY OF THE 2022 – 2023 ANNUAL WAGE REVIEW DECISION
Following its Review, the FWC has determined to:
o increase the rate of the NMW by 5.75 per cent with effect from 1 July 2023; and
o increase all modern award minimum wage rates by 5.75 per cent with from 1 July 2023.
In making its decision, the FWC noted that they had placed significant weight on the impact of the current rate of inflation on the ability of employees to meet their basic financial needs, further stating that inflation is reducing the real value of employees’ incomes and is causing households financial stress.
The FWC also noted that in making their decision, they had taken into account the recent robustness of the labour market, and the fact that increases to modern award minimum wage rates will provide a disproportionate benefit to female workers and may contribute to narrowing the aggregate gender pay gap across the entire employee workforce. The FWC’s analysis of the persisting gender pay gap across award employees is set out at section 6 of the decision.
The full decision of the FWC is available here.