The Fair Work Commission’s (FWC) annual wage review (AWR) process is well and truly underway, and the finish line is almost in sight.
Section 285 of the Fair Work Act 2009 (FWA) requires the FWC, each financial year, to conduct a review of the minimum rates in modern awards, and the National Minimum Wage (NMW).
The AWR is conducted by the FWC’s Expert Panel, a Panel made up of the FWC President, 3 full time FWC Members, and 3 part-time Members.
Each year, usually in early December, the President will issue a statement outlining the timetable for the AWR, and the draft research program. Submissions are sought from interested parties, which include unions, employer organisations, state governments, large organisations, and sometimes individuals with an interest in the outcome.
2024-2025 AWR
Decisions are usually handed down in early June of each year, with the effective date 1 July – as enshrined in the FWA. Decisions are televised and generally you will find many of the legal team at IRiQ Law gathered around one of our laptops watching it unfold.
While it is not possible to predict the final decision of the Expert Panel, it is interesting to note the submissions of several key parties:
| Party | Increase Amount per their Submission |
| Australian Council of Trade Unions (ACTU) | 4.5% |
| Australian Chamber of Commerce and Industry | No more than 2.5% |
| Australian Industry Group | No more than 2.6% |
| Flight Attendants Association of Australia | 5% |
| United Workers’ Union | 4.5% |
| Pharmacy Guild of Australia | No more than 2.5% |
| Australian Services Union | 2% |
| Master Grocers Australia Ltd | 2.5% |
| Western Australian Government | Fair and sustainable increase (no specific amount stated) |
| Council of Small Business Organisations of Australia (COSBOA) | Between 2% and 2.5% |
| National Farmers Federation | An increase be considered in the context of falling production (no specific amount stated) |
| Restaurant and Catering Industry Association | No more than 2.5% |
| Australian Manufacturing Workers Union (AMWU) | 14.5% increase to the NMW each year for 4 years, and modern award wages maintain relativities with the NMW |
| Victorian Government | Increase of an amount that is required to protect the real wages of Victorian workers (no specific amount stated) |
| Australian Retailers Association and National Retail Association | No more than 2.5% |
When the AWR decision is released, either late this month or in early June, IRiQ Law will provide a detailed overview of what the decision is, and what it means for employers.
2023-2024 AWR Decision
Although not necessarily indicative of the likely outcome of this year’s AWR, it is worth revisiting last year’s AWR.
The 23-24 AWR saw an increase of 3.75% to minimum rates in modern awards, with effect from the first full pay period on or after 1 July 2024. The increase granted in respect of the NMW took effect from 1 July 2024.
In the FWC decision, the Expert Panel highlighted gender undervaluation as an ongoing matter and stated that it would consider whether the minimum rates in the below identified awards should be increased on work value grounds to remedy potential gender undervaluation.
- Aboriginal and Torres Strait Islander Health Workers and Practitioners and Aboriginal Community Controlled Health Services Award 2020
- Children’s Services Award 2010
- Health Professionals and Support Services Award 2020
- Pharmacy Industry Award 2020
- Social, Community, Home Care and Disability Services Industry Award 2010
A separate Gender-based undervaluation review commenced shortly after the AWR decision and we’ve seen significant wage value cases decided since then – a topic for another article so stay tuned!
It remains to be seen what impact, if any these decisions will have on the AWR.
Preparing for the AWR Changes
IRiQ Law is here to support employers with tailored advice on implementing wage increases and managing compliance. If you have questions about what it might mean for your business, contact our team today.
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