Australia Declares a 3.75 Percent Minimum Wage Increase for 2024

The Fair Work Commission has recently announced a 3.75% increase in the minimum wage for Australian workers.

Important Points about the Rise in Australia’s Minimum Wage in 2024

• The Fair Work Commission has announced a 3.75% increase in minimum wage for Australian workers.
• The new ruling establishes a 38-hour workweek and sets the minimum wage at $24.10 per hour or $913.91 per week.
• The implementation of these changes is scheduled to begin on July 1, 2024.

Australia’s Minimum Wage in 2024

The Fair Work Commission of Australia has announced a 3.75 percent increase in the minimum wage for Australian workers. Effective July 1, 2024, there will be an increase in the minimum wage to $24.10 per hour and $915.91 per week, assuming a 38-hour workweek. This increase in minimum wage will impact a significant portion of the labor force nationwide, with 2.6 million people, or 20.7%, being affected. The increase amounts to $33 per week. When making the decision, we carefully considered factors such as living standards, higher living costs, and workforce participation.

Although Australian workers have welcomed this increase in the minimum wage, it has faced opposition from small businesses and famous personalities. Commission President Adam Hatcher expressed his disapproval of the decision, stating:

“The current circumstances do not warrant a substantial increase in award wages, as labor productivity has not improved significantly over the past four years and has only recently started showing positive growth.”

The May federal budget projected that consumer price inflation is expected to reach its highest point at 3.5% by the end of the current fiscal year, gradually declining to 2.75% by June 2025. The Reserve Bank’s most recent projections indicate that annual inflation is expected to be 3.8% for the current quarter and 3.2% by this time next year.

In addition, the commission expressed concern on Monday about the potential negative impact on industries that typically hire minimum-wage workers.

Small businesses have taken action in response to the recent increase in the minimum wage.

The local workers will undoubtedly welcome and appreciate this announcement of an increase in the minimum wage, but unfortunately, it has left the small business owners feeling unhappy. Luke Achterstraat, chief executive of the Council of Small Business Organizations Australia (COSBOA), has expressed that small businesses are supportive of raising the minimum wage for their workers. However, he points out that they are currently grappling with rising expenses in a difficult economic climate. During an interview on June 3, 2024, he made the following statement on ABC News Channel:

The current operating environment is undeniably challenging. Small businesses are particularly burdened by the high costs of levies, energy, rent, insurance, and borrowing. Additionally, the Fair Work Commission has highlighted the concerning stagnation of productivity over the past few years.

Federal Government Welcomed the Increase in the Minimum Wage

The increase in the minimum wage was met with a warm reception from the Federal Government.

The decision has been well received by the Federal Government. The Fair Work Commission (FWC) stated that the primary reason for raising the minimum wage was the financial difficulties that households were experiencing due to the cost of living. In addition, the increase in the minimum wage is in line with the projected target for inflation next year.

Treasurer Jim Chalmers made a statement during Question Time:

• This wage increase is truly essential and well-deserved for low-paid workers. This is a victory for 2.6 million workers and their families.

The Australian government’s minimum wage increase addresses the rising cost of living. This action will improve worker economic stability. While employees would gain from financial certainty, small businesses may struggle to manage greater pay costs.

Although inflation is projected to reach target levels in the coming year, this wage adjustment is anticipated to contribute to a stronger and more equitable economy that benefits all Australians in the long run.

How does Australia’s minimum wage compare to other countries?

Curious about how Australia’s minimum salary compares to other popular study destinations? Let us take a look.

Australia

In Australia, international students can work up to 24 hours per week during the semester and an unlimited number of hours during the holidays. From July 1, 2024, the minimum wage is AU$24.10 per hour. Casual employees are paid an additional 25% casual loading, which compensates for the lack of benefits such as paid sick leave and yearly leave. Australia’s minimum wage is evaluated annually and normally increases.

USA

In the United States, international students can work up to 20 hours per week during the semester and up to 40 hours over the holidays. The federal minimum wage is $7.25 per hour, however, many states and towns have greater minimum wages. The federal rate hasn’t risen since 2009.

UK

International students in the UK can work up to 20 hours per week during the semester, depending on their level of studies. As of May 2024, the minimum wage is £7.49 per hour for those aged 18 to 20, £10.18 for those aged 21 to 22, and £10.42 for those aged 23 and up.

Canada

International students in Canada can work up to 20 hours per week (up to 24 hours beginning in September 2024) throughout their studies and full-time during scheduled breaks. The minimum wage varies by jurisdiction, with Nunavut at CAD$19.00 per hour and Saskatchewan at CAD$14.00 per hour (which will rise to CAD$15.00 in October 2024).

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