What are the minimum wage increases for 2025?
From 1 July 2025, the national minimum wage will increase by 3.5% to $948.00 per week, or $24.95 per hour. The weekly rate is based on a 38-hour week for a full-time employee.
Additionally, minimum wage rates in all modern awards will also increase by 3.5%, effective from 1 July 2025. This will affect approximately 20.7% of the Australian workforce.
In deciding to increase the minimum wage, the Fair Work Commission primarily cited cost of living pressures caused by inflation and reductions in the real value of wages for employees reliant on the minimum wage.
This year’s increase is slightly lower than the 3.75% increase that occurred in 2024. In this regard, the Commission cited moderating factors including:
- poor growth in labour productivity
- upcoming increases to the minimum superannuation guarantee contribution rate (see below)
- economic uncertainty caused by shifting US trade policies.
Employees will be entitled to the increased rate from their first full pay period on or after 1 July 2025.
The pay increase will apply to all employees on a minimum wage rate. This includes junior employees, employees performing work under a training arrangement and employees with a disability.
Next steps for employers
In light of the upcoming increase, employers must take steps to ensure that they are paying employees at the correct rates.
Wage increases
If employers do have employees on minimum wage rates, they will need to increase these rates by 3.5% from 1 July 2025.
Where annualised wage arrangements are being used, employers should be assessing whether these arrangements are still satisfying the minimum award requirements.
If employers have enterprise agreements that provide for wage increases in line with the annual wage review, these will also need to be increased.
SGC rate increase
From 1 July 2025, the minimum superannuation guarantee contribution rate will also increase to 12%. Employers should be implementing this increase as well.
For more information on the minimum wage increase, please visit: Annual Wage Review 2025.
If you have questions about the minimum wage increase or require specific legal advice, please contact a member of our workplace relations and safety team at [email protected].