National Minimum Wage Review
On Friday 2 June 2023, the Fair Work Commission handed down its 2023 Annual Wage Review Decision, which will see:
- all minimum wage rates in Modern Awards increase by 5.75%;
- the National Minimum Wage increase to $882.80 per week or $23.23 per hour; and
- some employees working in the Aged Care industry receive a 15% wage increase – for more information about the Aged Care industry wage increase, CLICK HERE.
These wage increases will take effect on the first full pay period on or after 1 July 2023.
Superannuation Guarantee Rate Increase
On and from 1 July 2023, the Superannuation Guarantee Rate will increase to 11% from its current rate of 10.5%.
The Rate is scheduled to increase 0.5% each year until July 2025 when it will reach 12%.
Changes to Flexible Working Arrangements
From 6 June 2023, the following employees will also be entitled to request flexible working arrangements:
- employees who are pregnant; and
- employees (or members of their immediate family or household) who are experiencing family or domestic violence.
Employers will still be able to refuse a request for flexible working arrangements on reasonable business grounds, but they will need to take extra steps when refusing such a request – they will be required to:
- discuss the request with their employee
- genuinely try to find alternative working arrangements, and consider the consequences of refusing
- offer a written response explaining why they refused the request, other tweaks to work around the employee’s circumstances, and information about bringing the dispute to the FWC.
Pay Secrecy Laws
Pay secrecy is where a term of an employee’s employment agreement prohibits the employee from disclosing their pay and other employment entitlements to anyone else, including other employees.
Under the new laws, pay secrecy terms included in contracts entered into:
- before 7 December 2022 will remain active until such point as the contract is varied.
- on or after 7 December 2022 cannot be enforced.
On and from 7 June 2023, pay secrecy terms can’t be included in contracts at all, and employers who include pay secrecy terms into agreements with their employees could face penalties.
