Research for the Annual Wage Review 2023–24

Fair Work Commission staff may conduct or commission research as part of the annual wage review. The research program for the Annual Wage Review 2023–24 was finalised in a Statement [2024 FWC 278 on 2 February 2024 following an invitation to interested parties to comment on the draft research program. 

This page will be updated throughout the review. 

In undertaking the research program, a Minimum Wages Research Group is consulted comprising representatives nominated by:

• Australian Chamber of Commerce and Industry (ACCI)
• Australian Industry Group (Ai Group)
• Australian Council of Social Service (ACOSS)
• Australian Council of Trade Unions (ACTU)
• Australian Government
• state and territory governments.

The following items have been published to inform the 2023–24 Review.

Statistical report

This follows the format of previous Statistical reports and will be updated throughout the 2023–24 Review as new data are released. Each version of the Statistical report will be available on our website.

Research reference list

This follows the format of previous Research reference lists. It includes Australian and international literature, such as working papers, journal articles or other types of published reports relevant to the minimum wages and modern awards objectives. The list covers literature published following the Annual Wage Review 2022–23 and is updated throughout the 2023–24 Review.

Research reference list (pdf) – 16 May 2024

Research reports

Outlines of the research reports undertaken for the 2023–24 Review are provided below. 

Characteristics of employees on the National Minimum Wage

Characteristics of employees on the National Minimum Wage (pdf)

Joshua Tomlinson (Fair Work Commission)

The national minimum wage applies to award/agreement free employees. In the Annual Wage Review Decision 2022–23, the Expert Panel stated ‘[t]he proportion of the Australian employee workforce which is award/agreement free and to which the NMW wage rate applies (‘NMWreliant’) is small. Based on 2021 data, it appears that only 0.7 per cent of the employee workforce falls into this category and thus would be directly affected by any adjustment made to the NMW. Beyond this data, it is difficult to identify in practical terms any occupations or industries in which NMW-reliant employees are engaged. In previous Commission proceedings, parties have been unable to identify with precision any such award free employees.’

In light of this and the Expert Panel’s alignment of the NMW to the C13 rate in the Manufacturing and Associated Industries and Occupations Award 2020, the Expert Panel announced that ‘[a] wider review, including supporting research, concerning the needs and circumstances of low-paid award/agreement free employees is required’.

This research explored the characteristics of award-free employees on the National Minimum Wage using the Australian Bureau of Statistics’ Survey of Employee Earnings and Hours.

Stage 1 report: Gender-based Occupational Segregation: A National Data Profile

Stage 1 report: Gender-based Occupational Segregation: A National Data Profile (pdf) 

Natasha Cortis, Yuvisthi Naidoo, Melissa Wong & Bruce Bradbury (Social Policy Research Centre at the University of New South Wales)

The report examines current patterns of segregation in Australia using a data-driven approach. The UNSW researchers analysed data from the Australian Bureau of Statistics 2021 Census and the 2021 Survey of Employee Earnings and Hours. The researchers identified 144 detailed occupational classifications of any size where women comprised of over 60% of the workforce, and together employed nearly 4.7 million workers. However, the report focuses on a subset of 29 priority occupations that meet 3 criteria in that they were:

• large (containing over 10,000 people)
• highly feminised occupations (over 80% female) and
• in feminised industries (over 60% female)

Together, these large, highly feminised occupations in feminised industries employ over 1.1 million workers, constituting over 9% of the workforce. The report suggests that there are 13 modern awards used to set pay in these 29 large, highly feminised occupations.

For more information visit the Commission’s gender pay equity research. 

Stage 2 report: Gender pay equity research

Fair Work Commission

As outlined in the President’s Statement issued on 4 April 2024, Stage 2 of the Commission’s research project examines the 12 of the 13 modern awards identified in the Stage 1 report (except the Aged Care Award 2010, which is currently the subject of separate work value proceedings) that are used to set pay in highly feminised occupations that were identified within feminised industries. 

The report identifies the history of wage fixing and work value assessments in each of the 12 modern awards in order to aid the identification of any indicia of gender undervaluation. These indications include:

• a lack of a work value exercise undertaken by the Commission
• inadequate application of equal pay principles, and
• the making of consent awards and agreements.

The report examines the history of these awards to determine whether the Commission (or its predecessors, or, where relevant, State tribunals) has ever undertaken a comprehensive work value assessment of classifications within the awards. The award histories cover:

• any 4 yearly review or other post-award modernisation matters considering wages
• the award modernisation process
• the development of pre-modern federal awards, and
• the development of any state-based awards where relevant.

Read the full Stage 2 report: Gender pay equity research (pdf)

Interested parties are invited to comment on the research in reply submissions to the Annual Wage Review 2023-24 by 5pm (AEST) on Monday 29 April 2024. 

For more information visit our gender pay equity research webpage.

How have households in financial stress coped with the rising cost of living?

The rise in the cost of living may have varying impacts on households at different points of the income distribution. Using data including from the Household, Income and Labour Dynamics in Australia (HILDA) Survey, the research will analyse if, and how, employee households across the distribution have adapted to the higher cost of living in recent years. Responses by these households may be through changes to expenditure patterns or changes in income through job switching or taking on multiple jobs. A focus of the research will be on those households considered to be in financial stress, as identified in the Statistical report. 

A profile update of employee characteristics on modern awards

Following the publication of the Australian Bureau of Statistics’ Survey of Employee, Earnings and Hours for the reference period May 2023, the report A profile of employee characteristics across modern awards will be updated using microdata expected to be later in the year. 

Access to secure work: evidence from Australia

The Fair Work Legislation Amendment (Secure Jobs Better Pay) Act made changes to the objects of the Fair Work Act, as well as the modern awards objective and minimum wages objective. The reference to ‘job security’ was considered and applied in the Annual Wage Review 2022–23. This research will consider indicators of and trends in secure work in Australia. 

Business performance and characteristics

The Commission will engage with the Australian Bureau of Statistics to explore opportunities to use and link various data sources to undertake research topics that focus on the characteristics and performance of businesses, in particular, award-reliant businesses, if data permitting. 

Research proposals and expectant projects will be communicated in due course.

Material from past annual wage review research is also available.