Annual Minimum Wage Increase 2025: What Business Owners Should Know

The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and Modern Award wages.

The minimum wage decision increase 2025 takes effect on 1 July 2025.

Who does this increase affect?

National Minimum Wage: This change impacts employee across the nation, including full-time, part-time, and casual employees. It applies to employees not covered by specific awards or agreements.

Minimum award wages: The Commission has also set a 3.5% increase to minimum wages under awards.

Why does the minimum wage increase?

The minimum wage is raised annually to keep pace with inflation and rising living costs. It’s a way of ensuring that workers’ pay still remains fair and adequate.

National Minimum Wage Increase: What Employers Should Know

Compliance Obligations

Business owners need to comply with the new minimum wage rates from the first full pay period on or after 1 July. Payroll systems and employment contracts must be updated to reflect the new minimum wage. Not complying can lead to serious legal consequences, including penalties and criminal charges for underpayment.

Award coverage

Employers need to identify the correct award applicable to their employees and ensure compliance with both the National Minimum Wage and award-specific rates.

Need help with Award interpretation and classification to calculate your team members’ correct rates? Get in touch with us now.

How can business owners prepare for the changes?

1. Keep up to date on announcements from the Fair Work Commission. You can subscribe to our newsletter for monthly updates on legislation changes and employment law news.
2. Review payroll systems to implement wage changes on time.
3. Communicate with your team about the wage adjustments.
4. Consult with HR Partners like Now Actually or legal advisors to ensure you’re compliant with the law.