Minimum wages are set to rise with the Fair Work Commission handing down its Annual Wage Review decision for 2024–2025 – announcing a 3.5% increase to the National Minimum Wage and minimum award wages. This change will come into effect from the first full pay period on or after 1 July 2025.
If you’re a business owner, now is the time to review your payroll setup and ensure you’re prepared for the increase. Here’s a breakdown of what’s changing and what you can do next.
Minimum Wages Are Increasing
The National Minimum Wage for employees not covered by an award or enterprise agreement will increase to:
- $948.00 per week, or
- $24.95 per hour
For most employees, wages are set by a modern award. These award minimum rates will also rise by 3.5%, applying from the same date – 1 July 2025.
👉 If your pay week starts mid-week, the new rates begin from the first full pay period after 1 July. For example, if your weekly cycle starts Wednesday, the increase takes effect from Wednesday 2 July.
What You Can Do Now
We recommend taking the following steps to stay ahead of the changes:
- Check which award applies to your employees. Use the Fair Work Pay and Conditions Tool or check the list of awards on their website.
- Review your current payroll setup and budgeting to ensure you can accommodate the increase.
- Subscribe to updates from Fair Work to be notified when new rates are live.
- Bookmark this page for easy access to updates closer to 1 July.
If You’re Covered by an Enterprise Agreement
If your business operates under an enterprise agreement, the wage increase could still affect you. That’s because base pay rates in agreements can’t be lower than the relevant award minimum.
Now is a good time to review your agreement or get in touch if you’re unsure whether changes apply to your team.
Superannuation Guarantee Increases
From 1 July 2025, the super guarantee rises to 12%. Make sure this is reflected in your payroll systems. Unlike the wages change coming into effect from the first full pay period, the superannuation changes are effective from the first pay in July – even if some or all of the pay period relates to June.
Keep Up to Date
Need help reviewing your payroll and systems ahead of these changes? Get in touch – we’re here to help you stay compliant and in control.
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