Circular 2023/4 - Annual Wage Review updating Australian Government Awards

Purpose

This circular is to inform Australian Government agencies of changes to the minimum wage, specifically in regard to the Australian Public Service Enterprise Award 2015, the Australian Government Industry Award 2016 and other enterprise awards covering Australian Government employment.

The Fair Work Commission made the Annual Wage Review 2022-23 Decision on 2 June 2023. The decision to increase the National Minimum Wage was done in two steps. First, the Fair Work Commission has realigned the National Minimum Wage with the C13 classification wage rate instead of the C14 classification wage rate. Secondly, they have further increased the National Minimum Wage by 5.75 per cent.
This provides a total increase to the National Minimum Wage of 8.6 per cent to $882.80 per week or $23.23 per hour.
The decision also increases modern award minimum rates by 5.75 per cent.
The increase to the National Minimum Wage and the modern award minimum rates will be effective from 1 July 2023.

Commonwealth employers have obligations under the Fair Work Act 2009 to ensure their employees are paid correctly. The hourly base rate of pay for an employee must not be less than the hourly base rate payable under the award which covers that employee.
For existing industrial instruments, agencies should ensure that employees are paid at least the new award minimum pay rates. As an example, the minimum award hourly pay rate for an APS Level 1 employee will increase from $24.25 to $25.64 on 1 July 2023.
The Fair Work Commission will update minimum pay rates in awards. Agencies should refer to the determinations released by the Fair Work Commission that increase wage rates for their relevant award when they become available.
Agencies need to ensure payroll processes are up to date and accurate and to avoid any potential for underpayments. Information on the correction of underpayment of wages can be found in this APSC Circular.
Agencies should also be aware that the adjustment from this decision will also flow through to employees engaged through the Supported Wage System. Awards will be updated accordingly.

For further information, please contact the Australian Public Service Commission at workplacerelations@apsc.gov.au or your agency’s relationship manager.