On 3 June 2025, the Fair Work Commission confirmed a 3.5% increase as part of the 2025 minimum wage increase in Australia. This annual review is a critical process that ensures Australia’s minimum wage keeps pace with the cost of living and economic conditions—and its outcomes directly impact thousands of businesses and employees nationwide.
What’s Changing from 1 July 2025?
- The National Minimum Wage will increase to $948.00 per week (based on a 38-hour week), or $24.95 per hour.
- All modern award minimum wages will also increase by 3.5%.
- These changes apply from the first full pay period on or after 1 July 2025.
What Does This Mean for Employers?
Whether you employ one person or hundreds, these changes require immediate attention to ensure your business remains compliant with Australian workplace laws.
Here’s what you should be doing before 1 July:
- Review employee pay rates – Ensure all employees are paid at or above the new minimum wage or their applicable modern award rate.
- Update payroll systems – Check your accounting or payroll software reflects the new rates from the relevant date.
- Audit employment contracts – Adjust base rates of pay if they are linked to award rates or the National Minimum Wage.
- Review your budget and forecasts – Account for the increased wages in your financial planning.
- Check enterprise agreements – If you operate under an enterprise agreement, ensure the base pay rates still meet or exceed the new minimums.
- Communicate with your team – Keeping employees informed helps build trust and transparency around wage changes.
Need Help Navigating These Changes?
Keeping up with wage compliance can be challenging—especially when you’re also running a business. If you’re unsure about your obligations or want to ensure your payroll processes are accurate and up to date, we can help.
Contact us today to learn more about our full suite of payroll services. We’ll manage the complexity—so you can focus on growing your business with confidence.
Learn more about minimum pay rates at Minimum wages.