WAGES TO INCREASE SOON IN AUSTRALIA

As of January 2025, significant wage adjustments are set to take effect across various sectors in Australia, impacting industries such as horticulture, agriculture, large-scale solar (LSS), construction and meat processing. These changes are part of the Fair Work Commission’s (FWC) ongoing efforts to ensure fair compensation for workers nationwide.

National Minimum Wage Increase

Effective from July 1, 2024, the national minimum wage in Australia increased by 3.75%, bringing it to $24.10 per hour or $915.91 per 38-hour workweek. This adjustment aims to align wages with the rising cost of living and inflation rates.

Award-Specific Changes

In addition to the general minimum wage increase, specific modern awards have undergone revisions to their pay structures:

• Horticulture Award 2020: Starting from April 1, 2025, the Horticulture Award will be updated to reflect new introductory level classifications and minimum pay rates. Employers in the horticulture sector should review these changes to ensure compliance.
• Pastoral Award 2020: Similar to the Horticulture Award, the Pastoral Award will see updates effective from April 1, 2025, affecting classifications and pay rates. It’s crucial for employers in this sector to familiarize themselves with the new requirements.

Criminalisation of Wage Underpayment

A significant legislative change effective from January 1, 2025, is the criminalisation of intentional underpayment of wages or entitlements. Employers found guilty of deliberately underpaying employees may face criminal charges, emphasising the importance of adhering to the updated wage standards.

Implications for Employers and Workers

• Employers: It’s imperative to stay informed about the specific changes to relevant awards and the national minimum wage. Regularly reviewing and updating payroll systems will help ensure compliance and avoid potential legal repercussions.
• Workers: Employees should be aware of their entitlements under the new wage structures. Understanding these changes empowers workers to ensure they receive fair compensation for their labor.

Conclusion

The upcoming wage increases and legislative changes underscore Australia’s commitment to fair labor practices.