Minimum wages increase from 1 July 2023

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Published 30 May 2023 | Updated 18 August 2023

As part of the Annual Wage Review (AWR) 2022-23, the Fair Work Commission (the Commission) has increased the National Minimum Wage and award minimum wages.

From 1 July 2023:

  • the National Minimum Wage increased to $882.80 per week or $23.23 per hour
  • award minimum wages increase by 5.75%.

Our tools, resources and website have been updated with the new minimum pay rates. Go to our Pay and Conditions Tool now.

What you can do now

We’ve updated our tools, information and resources with the new pay rates.

You can:

Continue reading to learn more about the minimum wage increase.

National Minimum Wage increase

The National Minimum Wage applies to employees not covered by an award or registered agreement.

From 1 July 2023, the National Minimum Wage increases to $882.80 per week or $23.23 per hour. This increase applies to employees from their first full pay period starting on or after 1 July 2023.

Award minimum wage increase

Most employees are covered by an award. Awards are legal documents that outline the minimum pay rates and conditions of employment.

From 1 July 2023, adult minimum award wages increase by 5.75%. This increase applies to employees from their first full pay period starting on or after 1 July 2023.

Award wages less than the National Minimum Wage

As a result of the 2023 AWR decision, some minimum award wages 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 you're covered by an award or agreement, the National Minimum Wage doesn't apply.

Not sure of your award? Use our 3-step Find my award tool to check what award you’re covered by.

National Training Wage increase

Wage increases for trainees under the National Training Wage come into effect on the same date as award minimum wage increases. This includes awards that refer to and incorporate the terms under Schedule E of the Miscellaneous Award, which have an operative date of 1 July 2023.

Learn more in our Library article Trainee rates in the National Training Wage schedule.

Agreements

If you’re covered by a registered agreement, the minimum wage increase may apply. This is because the base pay rate in a registered agreement can’t be less than the base pay rate in the relevant award. Find out more in our Library article Annual Wage Reviews and registered agreements.

Check your agreement by searching for it on the Commission’s website: Find an agreement.

Other changes from 1 July 2023

From 1 July 2023, there are other changes employers and employees should know about.

High income threshold and compensation cap

From 1 July 2023, the:

  • high income threshold is $167,500
  • compensation cap is $83,750.

When an employee has accepted a written guarantee of annual earnings that’s more than the high income threshold:

  • the relevant award doesn’t apply to them anymore
  • they are no longer eligible to make an unfair dismissal claim through the Commission.

These employees are still protected by minimum conditions and protections in the Fair Work Act, including the National Employment Standards. The high income threshold is reviewed each year.

Find out more at Award and agreement free wages and conditions.

The compensation cap is the highest amount the Commission can order an employer to pay in an unfair dismissal case. The cap changes on 1 July each year and is set by the Fair Work Regulations.

There are also changes to the fees for making applications to the Commission. For more information, see Increase to the application fees for 2023-24.

Paid Parental Leave

From 1 July 2023, the current entitlement to 18 weeks’ paid parental leave pay will be combined with the current Dad and Partner Pay entitlement to 2 weeks’ pay. For more information, check out Changes to the paid parental leave scheme.

Superannuation (super)

From 1 July 2023, the super guarantee rate will increase from 10.5% to 11%. For a list of super guarantee rates, visit ATO – Super guarantee percentage.

If you want to understand your super obligations or entitlements, contact the Australian Taxation Office (ATO) for help and advice at ATO – Contact us.

Changes from 30 June 2023

Supported Employment Services Award

From 30 June 2023, the Supported Employment Services Award changed. The changes affect:

  • minimum rates
  • classifications
  • supported wage assessments.

For more information, visit Changes to Supported Employment Services Award.

Aged care sector

Direct care and some senior food services employees in the aged care sector received a 15% wage increase from 30 June 2023. For more information, visit 15% wage increase for aged care sector.

More information

Calculate your new pay rates

To find out your new pay rates, you can:

If you’re not sure which award covers you, you can:

Annual Wage Review decision

To learn more about the Commission’s Annual Wage Review decision this year, you can read the decision on the Commission’s website.

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