
Fair Work Commission (FWC) Announces the increase of National Minimum Wage and minimum award wages
Minimum wage increase from Fair Work Commission (FWC) Announcement
Fair Work Commission (FWC) Announces 3.5% Minimum Wage Increase Effective 1 July 2025
3.5% increase to the National Minimum Wage and minimum award wages
On 3 June 2025, the Fair Work Commission (FWC) announced a 3.5% increase to the National Minimum Wage and minimum award wages, effective from the first full pay period starting on or after 1 July 2025. This decision impacts approximately 2.6 million Australian workers, including those under enterprise agreements linked to annual wage reviews.
Hourly wage from $24.10 to $24.94
The increase raises the minimum hourly wage from $24.10 to $24.94, equating to an additional $32 per week for full-time employees.
The ACTU had advocated for a 4.5% increase for Stakeholder Positions
Australian Council of Trade Unions (ACTU): The ACTU had advocated for a 4.5% increase, aiming to address the cost-of-living pressures faced by low-paid workers.
Australian Chamber of Commerce and Industry (ACCI), had proposed a 2.5% increase
Employer Groups: Employer organisations, such as the Australian Chamber of Commerce and Industry (ACCI), had proposed a 2.5% increase, aligning with headline inflation rates.
sydney.edu.au
sydney.edu.au
Employer Obligations
Australian employers must implement the new wage rates from the first full pay period on or after 1 July 2025. This includes updating payroll systems to reflect the increased minimum wages and ensuring compliance with the revised pay rates. Employers should refer to the Fair Work Ombudsman's Pay and Conditions Tool and updated pay guides for specific information related to their industry or occupation.
Compliance
Failure to comply with the updated wage requirements can result in penalties and legal action. Employers are encouraged to review their obligations and seek guidance if necessary to ensure adherence to the new wage standards.
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