The Fair Work Commission has decided to raise the National Minimum Wage and minimum award wages by 3.5%.
National Minimum Wage
The National Minimum Wage applies to employees who aren’t covered by an award or enterprise agreement.
Starting 1 July 2025, the National Minimum Wage will go up by 3.5%. The new rate will be:
-
$948 per week, or
-
$24.95 per hour.
These updated rates will take effect from the first full pay period beginning on or after 1 July 2025. For example, if your pay week starts on Wednesday, the new wage will apply from Wednesday, 2 July 2025.
Minimum award wages
Most workers are covered by an award, which is a legal document that sets the minimum pay and work conditions for a specific industry or job.
The Fair Work Commission has approved a 3.5% increase to the minimum wages in these awards.
This change will take effect from the first full pay period beginning on or after 1 July 2025. So, if your pay week starts on a Wednesday, the new rates will apply from Wednesday, 2 July 2025.
If you’re covered by an agreement
An enterprise agreement outlines the basic working conditions for employees and can apply to a single business or several businesses.
If you’re under an enterprise agreement, the wage increase might still apply. This is because the base pay in the agreement must be at least equal to the base pay in the relevant award.
Updates to Pay Rates in the Pharmacy Award
The Fair Work Commission had earlier announced a rise in the minimum pay rates under the Pharmacy Award. This increase will take effect from the first full pay period starting on or after 30 June 2025.
For employees covered by this award, the minimum wage will change twice:
-
first, from the pay period beginning on or after 30 June 2025, and
-
again, from the pay period beginning on or after 1 July 2025.
Increase to superannuation guarantee
From 1 July 2025, the superannuation (super) guarantee increases to 12%.
This information was sourced from the Fair Work Ombudsman’s webpage and was edited prior to publication.
For more info, click here