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Navigating the 2023 Australian Minimum Wage Increase: What You Need to Know

From July 1st 2023, several changes will take effect in Australia that will benefit the workers’ rights. We are here to explain what these changes entail and provide you with essential knowledge to ensure the best work experience in Australia while protecting your rights.

1- The minimum wage increases

A good thing to know when you come to a foreign country is to know the minimum wage. You are lucky because in Australia it has increased! Following the Annual Wage Review 2022 – 23, the National Minimum Wage is now set to rise from $812.60 to $882.80 per week or $21.38 to $23.23 per hour based on a 38-hour week for full time employee. This raise is effective beginning with the employee’s first complete pay period beginning on or after July 1, 2023.

Tips: Employers and employees can calculate the new pay rates and check the legal minimum rates you must pay for your workforce using an updated free Pay Calculator by the Fair Work Ombudsman.

2- Award minimum wage increases

An award is a document that your boss has to give you when you start a job. It enables you to know the minimum pay rates and conditions of employment. According to your sector your award is different. The Commission also announced that starting with the first full pay period beginning on the 1st of July and for all employees covered by awards, the minimum wage rates will increase by 5.75 percent.

Tips: If employees are unsure of which awards apply to them, you can use the Find my award tool or get assistance from the Fair Work Ombudsman to identify any relevant awards.

3- Work hour limit

If you arrived in Australia on a student visa, take note that the maximum number of working hours per fortnight will now be capped at 48 hours during study terms and semesters. It is advised that international students stay informed in order to comply with this changed law and maximize their exchange program experience. You can still work unlimited hours during no-study periods in your holidays.

Tips: International students can consult the academic calendar of your university to learn more about their holidays and schedule your full-time working hours.

4- Paid parental leave

The existing entitlement of 18 weeks’ paid parental leave pay will be combined with the current Dad and Partner Pay entitlement, resulting in a combined total of 20 weeks’ pay. This enhancement aims to provide greater support and flexibility for growing families during the precious early stages of parenthood. Make sure to stay informed about these updated provisions to maximize the benefits available to you as new parents.

For those with questions about life in Australia, our blog post “Moving to Australia” is a must-read. In this blog article, you can find details of all important information to help you settle into life in Australia.

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