The Fair Work Commission’s recent decision to increase both the minimum and award wages by 3.75% starting July 1, 2024, presents a significant development for small businesses, including the electrotechnology sector. This increase sets the national minimum wage at $24.10 per hour, equating to $913.91 per week for a full-time, 38-hour workweek. Electrical contracting employers will likewise see a 3.75% increase to minimum wage rates across all classifications prescribed by the Electrical Award.
This change will impact approximately 2.6 million workers, accounting for 20.7 per cent of the national workforce.
For small businesses in the electrotechnology sector, this wage increase poses both challenges and opportunities. Naveen Raghavan, WorkPlace Relations Advisor at NECA/Business Solutions Hub, acknowledges the impact of this ruling.
“While the increase aims to support workers facing cost-of-living pressures, it inevitably adds to the operational costs for small businesses already navigating a tough economic landscape.”
“Small businesses, which often operate on tight margins, will need to strategically manage these increased labour costs.
“It's crucial for small business owners to assess their financial planning and consider adjustments in pricing, service offerings, or cost management strategies to absorb these changes effectively.” Naveen adds.
There are also a suite of benefits to this wage increase. Higher wages can lead to improved employee satisfaction and retention, which is particularly valuable in sectors like electrotechnology, where skilled labour is essential.
“Investing in our workforce through fair wages can also enhance productivity and service quality, ultimately benefiting the small business in the long run.”
The Fair Work Commission estimates that the increase will have a limited effect on the broader economy, aligning with forecasted wage growth and anticipated inflation rates. Nevertheless, small businesses must remain vigilant and proactive in managing their finances.
“By embracing these changes thoughtfully, small businesses can turn this challenge into an opportunity for growth and sustainability.” Naveen says.
The NECA Victoria Workplace Relations Team can assist you navigate the Award your employees are under and pay rates to ensure you are paying your staff correctly.
Simply call 1300 300 031 or email your enquiry to [email protected]