Fair Work Commission raises wages 4.75% for nearly 3 million
The Fair Work Commission raised minimum pay by 4.75% on Tuesday, lifting wages for about 2.8 million workers on award rates and nearly 3 million workers overall. About 100,000 of the lowest paid workers will receive a 6% increase, and the new rates take effect from 1 July.
Adam Hatcher Decision
Fair Work Commission president and Justice Adam Hatcher said this year’s decision was “particularly challenging” as fuel prices and inflationary pressures weighed on pay packets. He said falling living standards had hit the lowest paid the hardest.
The lowest ongoing wage rate for employees will rise from nearly $24.95 an hour to $26.44 an hour. Hatcher said the higher increase for the lowest paid reflected a structural adjustment to pay classifications, and he referred to “additional measures” for more vulnerable employees.
Jim Chalmers Wage Call
Treasurer Jim Chalmers had called for a “real” wage increase that was also “sustainable.” Unions had sought a 6% minimum wage increase, while the Australian Chamber of Commerce and Industry called for 3.5%.
The commission’s ruling lands above the 3.5% increase set for 2025-26 and below the unions’ demand. It gives the lowest paid a larger rise than other award workers, a split that leaves the award system moving at two speeds from 1 July.
1 July Pay Change
For workers on award wages, the change shows up in the first full pay period from 1 July under the new rates. Employees at the bottom of the pay scale will see the biggest percentage lift, while other award workers will receive the 4.75% increase.
The immediate question for affected workers is simple: check your award rate and your next payslip against the new $26.44 minimum hourly figure. That is the new floor the commission has set for the lowest ongoing wage rate.
