Major Pay Changes: Is your Business Ready for 1 July 2025?
Many employees across Australia will receive an increase in their minimum wages from today. But employers do not need to worry, as we are breaking it down below to show exactly what you need to do to stay compliant.
Every year the FWC reviews minimum wages to make sure they are fair and in line with Australia’s economic conditions. In its 2024–2025 decision, the FWC has revised the National Minimum Wage and all minimum pay rates under awards. This change will take place from 1 July 2025. This means this comes into effect for full pay periods starting on or after 1 July 2025.
1. New National Minimum Wage
The National Minimum Wage applies to employees who are not covered by an award or a registered agreement.
From 1 July 2025, the National Minimum Wage increases by 3.5% and will be:
· $948 per week, or
· $24.95 per hour.
What if the Employee is covered under an Award or Enterprise Agreement?
Yes, the FWC has increased the minimum wages for employees under awards by 3.5%. Similarly, the new minimum wages will also apply to enterprise agreements as the minimum base pay rates in those agreements cannot be lower than the base rates in the relevant award.
2. Increase to the Superannuation Guarantee from 1 July 2025.
Yes, the superannuation (super) guarantee increases to 12% from the current 11.5%.
Why Did the FWC Make This Decision?
The FWC’s goal was to ensure that workers are not falling behind financially, while also minimising pressure on small businesses. The decision was based on key factors such as inflation trends, rising cost of living, and broader economic growth.
What Should Employers Do Now?
Review current pay rates
Make sure employees covered by awards or the national minimum are paid correctly (use the updated Pay and Conditions Tool on the Fair Work site)
Update payroll systems and employment contracts by 1 July 2025.
Ensure all employees are paid at least the new minimums.
Any enterprise agreements or annual salary arrangements remain compliant.
Employers need to remember that failing to comply with these can lead to serious penalties.
If you require assistance in reviewing your current employment contracts to ensure compliance with the revised pay rates, Voice Lawyers can assist you. This article is general in nature and is not legal advice.
You can contact us at office@voicelawyers.com, or give us a call at 02 9261 1954 or use the link on our website to book a consultation to speak with one of our lawyers.