How does your pay rise get decided each year?

If you’re one of the almost three million workers in Australia who rely on an award wage or the national minimum wage, you might be wondering…

Who decides if my pay goes up each year? Is there anything I can do to influence it?

There’s actually a few answers to the first question – and the answer to the second question is yes.

Let’s talk about why.

Step by step

Every year, the Fair Work Commission (FWC) reviews the minimum wage and award wages and decides how much they should increase.

This is called the Annual Wage Review, and it takes place from around April to June.

To help make the decision, the FWC asks interested parties (like unions and employer groups) to share what they think the increase should be and why.

Every year, the union movement submits a claim, representing the nearly three million workers who rely on these wages, arguing for a fair and decent increase that reflects the value of work and keeps up with the cost of living.

The employers usually argue for an increase doesn’t keep up with the cost of living – sending working backwards with a pay freeze or even a pay cut.

With all the infomation, the FWC makes a decision – and it comes into effect from 1 July.

Who’s got the power?

So… the first answer is, technically: the Fair Work Commission.

But the decision is influenced by what workers have to say. Which means the real answer… is you.

Pay rises don’t just happen. They’re won. And we win more when we stand together: every union member makes our collective voice stronger, louder and more powerful.

Every worker has the right to live a decent life with fair pay for their work, which is why the minimum wage exists. Union members fought hard to set this minimum standard and continue to fight for increases that workers need and deserve.