2025 Minimum Wage Increase: What you need to know

The Fair Work Commission (FWC) has delivered its annual wage review decision, announcing significant increases to Australia’s minimum wage rates.

The National Minimum Wage and Modern Awards will rise by 3.5%, bringing the minimum wage to $948.00 per week or $24.95 per hour. This percentage increase applies across all minimum wages set out in modern awards and takes effect from the first full pay period on or after 1 July 2025.

The FWC’s determination was shaped by three key factors: mounting cost of living pressures facing low-paid workers, the Reserve Bank of Australia’s forecast that inflation will return to its target range, and ensuring the increase remains economically sustainable.

This 3.5% rise closely mirrors the 3.75% increase awarded in 2024. Significantly, the Commission acknowledged that over the past four years, workers dependent on award minimum wages and the National Minimum Wage have experienced an erosion in real purchasing power due to inflation outpacing wage growth

 Superannuation Guarantee Increase – 1 July 2025

The National Minimum Wage increases will coincide with a significant superannuation change effective 1 July 2025. The Superannuation Guarantee rate will increase from 11.5% to 12% of ordinary time earnings for all employees. This marks the final step in the phased increases that began on 1 July 2021

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Action Required

Immediate Steps: 

• Ensure employees on Modern Awards or National Minimum Wage receive correct pay increases by the effective date
• Review arrangements for employees paid above award rates through annualised salaries or flat rates to confirm ongoing Award compliance
• Verify that enterprise agreement base rates meet new Modern Award minimums

Critical Deadline: Review all employee pay rates before 1 July 2025 to ensure full compliance with both wage and superannuation changes.

Compliance Reminder: With wage theft now criminalised from 1 January 2025, maintaining accurate pay practices is more critical than ever. These minimum wage changes provide an ideal opportunity to conduct a comprehensive review of your employment obligations.

Support Available: Need assistance with your compliance review or implementing these changes? Contact your lead consultant or reach out to our team for expert guidance.

Click here to view the Fair Work Commission’s full determination 

Credit: This article is based on an item published by Skildare on 03/06/25