The Fair Work Commission (the Commission) reviews the National Minimum Wage and minimum award rates of pay each year.
Find out more about the Annual Wage Review (AWR).
Annual Wage Review
Annual Wage Reviews
How the Annual Wage Review works
Every year, the Commission reviews the National Minimum Wage and minimum rates of pay in modern awards to decide if they should be increased. This is the Annual Wage Review.
The AWR usually happens between March and June. Any changes generally come into effect on 1 July.
For more information about the review, visit the Commission’s Annual Wage Reviews page.
To read about the previous AWR decision, see 2022 - 2023 Annual Wage Review.
What the Annual Wage Review changes
As part of the AWR, the Commission can change minimum wages, including:
- the National Minimum Wage
- the National Training Wage
- minimum wages in awards.
This can also affect minimum wages in agreements.
Other changes can happen alongside the AWR, including changes to the high income threshold and compensation cap.
National Minimum Wage
The National Minimum Wage applies to employees not covered by an award or registered agreement.
This increase typically applies to employees from their first full pay period starting on or after 1 July each year.
National Training Wage
Most trainees on a registered traineeship get their pay and some conditions from Schedule E in the Miscellaneous Award.
Since award wages are impacted by the AWR, trainee wages can be updated at the same time.
The wage changes also apply to awards that refer to Schedule E of the Miscellaneous Award for their trainee pay.
Calculate trainee wages with our Pay and Conditions Tool.
Find out more information about Trainee pay and Trainee rates in the National Training Wage schedule.
Awards
This increase generally applies to employees from their first full pay period starting on or after 1 July each year.
Agreements
The minimum wage increase may apply to employees covered by a registered agreement or enterprise agreement.
This happens because the base pay rate in an agreement can’t be less than the base pay rate in the relevant award.
Find out more about Annual Wage Reviews and registered agreements.
Check your agreement by searching for it on the Commission’s website: Find an agreement.
High income threshold and compensation cap
The high income threshold is the maximum yearly earnings that an employee can get while still being covered by an award.
When an employee is guaranteed in writing to earn an annual amount that is more than the high income threshold:
- the relevant award doesn't apply to them anymore
- they aren't eligible to make an unfair dismissal claim through the Commission.
Find more about the high income threshold on our Award and agreement free wages and conditions page.
The compensation cap is the highest amount the Commission can order an employer to pay in an unfair dismissal case. It is set at half the high income threshold, so the compensation cap also increases on 1 July each year.
Find out more on the Commission’s Compensation cap page.
