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All employees who work in Australia are liable to a minimum wage. In today’s blog, we’ll discuss the minimum wage in Australia in 2024. Let’s get started:

Find the Right Minimum Wage

For most employees, the minimum wage depends on the award that covers their occupation or industry. Awards cover various occupations and industries so it is crucial to get it right.

The National Minimum Wage

The National Minimum Wage applies to workers not covered by a registered agreement or an award. This is the minimum wage offered by the Fair Work Act 2009 and is reviewed every year. As of 1 July 2023, $23.23 per hour or $882.80 per week is the National Minimum Wage. Apart from this, the minimum wage also depends on the employee’s qualifications and age. Australia doesn’t offer different wages city-wise as there is only one federal nation’s minimum wages that apply to the whole country.

For the year 2024, the minimum wage in Australia will be $23.23 per hour for employees aged 21 and above. Employees under 21 will be liable to a minimum wage of $15.23 per hour. Currently, approximately 2.75 million Australian employees receive this minimum wage. After June 30th, 2024, individual workers will receive updated minimum wage rates.

Workers covered by a registered agreement or an award are liable to the minimum pay rates, including penalties or allowances in their agreement or award. These pay rates could be higher than the National Minimum Wage.

Minimum Wage Changes

Every year, the Fair Work Commission checks both the minimum pay rates and the National Minimum Wage under awards (Annual Wage Review). Most modifications start on the first full pay time on or after 1 July.

Award Wages Less than the National Minimum Wage

Because of the 2023 Annual Wage Review decision, the minimum award wage in some awards might be less than the National Minimum Wage. For instance, some awards have introductory pay rates for new workers in their industry. These rates usually apply for a limited time until an employee moves to the next level. If a worker is covered by an agreement or award, the minimum wage set in the award will apply instead of the National Minimum Wage.

Possible Increase in 2024

It has been expected that the minimum wage may increase by 940 AUD in 2024. These wages are expected to increase by 3.5% from the current rate, though transportation, non-financial and manufacturing industries are anticipated to see less growth as compared to other sectors. As of July 2023, the Australian minimum wage is $23.23 per hour and or $882.80 per week.

The minimum wage depends on various factors, including worker age, employment type, and work capacity. The Federal Fair Work Commission’s Expert Panel sets the minimum wage rates that workers must follow. No employer is allowed to pay less than the minimum wage. These rates are the same for full-time and part-time employees, and they are reviewed annually to account for inflation and worker needs.

An 8% rise in the Australian minimum wage can be expected by Australian employees. This rise varies based on the employee’s field of work, years of qualification, specific role and experience, inflation and working location. The federal government makes changes depending on the employee’s requirements and offers them a sufficient wage.

However, there is a significant pay difference between men and women in Australia. On average, women earn 77.2 cents for every dollar earned by men. The average income for Australian male workers is 69K AUD, while for female workers, it is 67K AUD.

Currently, the economic situation is improving, and the national minimum wage is increasing by 8.6%. This increase is the highest to date and puts Australia at the top of the world’s minimum wages.

Conclusion

Based on income, you need to pay taxes to the ATO. Therefore, if you are looking for Reliable Melbourne Accountants to manage tax matters for you or your company, then you can reach us. We have helped many people in managing their tax matters.

More Useful Links:
Small Business Accountant
Tax Accountant Melbourne
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Bookkeeping for Small Business

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