2024 Minimum Wage Australia Guide

2024 Minimum Wage Australia Guide

Table of content

  1. What is the Minimum Wage in Australia?
  2. Annual Wage Review: Changes and Updates for 2024
  3. Understanding Award Wages
  4. Enterprise Agreements and Minimum Wage
  5. Minimum Wage for Casual and Part-Time Employees
  6. Minimum Wage for Employees Under 21 in 2024
  7. How can Workstem assist you?

What is the Minimum Wage in Australia?

The minimum wage is the lowest legally mandated hourly wage that employers are required to pay their employees for their work. It is set by government authorities to ensure that workers receive a basic level of compensation that allows them to meet their basic needs.

It is generally dependent on the industrial instrument that applies to their employment. For example, a modern award or registered agreement.

Annual Wage Review: Changes and Updates for 2024

Each year, the Fair Work Commission reviews both the National Minimum Wage and minimum pay rates under awards (Annual wage review). Most changes begin on the first full pay period on or after 1 July.

*For more information on the wage review process visit Fair Work Commission – Annual wage reviews.

Understanding Award Wages

As a result of the 2023 Annual Wage Review decision, the minimum award wages in some awards may now be less than the National Minimum Wage.

For example, some awards contain introductory pay rates for new employees in their industry. These rates generally apply for a limited time until an employee progresses to the next level.

If an employee is covered by an award or agreement, the minimum wage set out in the award will apply instead of the National Minimum Wage.

Enterprise Agreements and Minimum Wage

An enterprise agreement is a legally binding agreement between an employer and a group of employees that sets out the terms and conditions of employment. These agreements can be industry-specific or company-specific and must meet the minimum standards set out in the Fair Work Act 2009.

Enterprise agreements can offer employees higher wages than the minimum wage, provided that they meet or exceed the minimum standards set out in the Fair Work Act. Employers must ensure that any enterprise agreement they negotiate with their employees complies with the relevant legal requirements, including the Better Off Overall Test (BOOT) which ensures that employees are better off under the agreement compared to the relevant award.

Overall, enterprise agreements can provide flexibility for both employers and employees in setting pay rates, hours of work, and other conditions of employment, but they must comply with the minimum standards set out in the Fair Work Act to ensure fair and lawful employment practices.

Minimum Wage for Casual and Part-Time Employees

The average casual time salary in Australia is $74,827 per year or $38.37 per hour. Entry-level positions start at $59,687 per year, while most experienced workers make up to $161,850 per year.

The average part time salary in Australia is $67,519 per year or $34.63 per hour. Entry-level positions start at $55,376 per year, while most experienced workers make up to $119,806 per year.

Minimum Wage for Employees Under 21 in 2024

The minimum wage for workers under 21 who are not covered by an award or agreement is determined based on a percentage of the national minimum wage. In Australia, individuals under the age of 21 fall under the category of junior employees, and they may be subject to varying minimum wage rates.

 

Age Percentage Full time and part-time

Casual (+25% of the base rate)

Under 16

36.8% $8.55 $10.69

16

47.3% $10.99 $13.74
17 57.8% $13.43

$16.79

18 68.3% $15.87

$19.84

19 82.5% $19.16 $23.95
20 97.7% $22.70 $28.38
Under 16 36.8% $8.55

$10.69

16 47.3% $10.99

$13.74

How can Workstem assist you?

Simplify your payroll process and ensure accurate pay rates with Workstem’s automated payroll system. Our pre-built modern award interpretation software covers 122+ awards and 34 EBAs, and keeps you up-to-date with penalty rates and other award entitlements.

Choose between our Standard and Advanced plans, and enjoy a range of benefits such as Fair Work compliance, an employee self-service App, and customised rule set.

Book a free demo with our payroll experts. Experience the efficiency and accuracy of Workstem today!

Read More:

Comprehensive Guide | 2023 Minimum Wages Australia

Guide to Casual Minimum Wage Australia

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