The Fair Work Commission have released the 2025 Annual Wage Review decision set to take effect from July 1, 2025. Employers be aware of the new Award Rates
National Minimum Wage Increase
The Fair Work Commission Annual Wage Review Panel has decided to increase the National Minimum Wage (NMW) and all award minimum wages by 3.5% from 1 July 2025.
The NMW will be raised to $948.00 per week or $24.95 per hour. This applies universally to all employees not covered by specific awards or agreements.
The increase occurs in conjunction with the increase to superannuation contributions of 0.5% to 12% effective from 1 July 2025.
Employers must ensure they pay no less than these minimum rates but may absorb the increases within higher ‘over-award’ and ‘over-agreement’ rates currently paid to employees unless enterprise agreements or individual contracts of employment require the increases to be passed on to the employee.
Steps for Employers to Ensure Compliance
(1) Update Payroll Systems: Adjust payroll calculations to incorporate the new NMW and increased award rates.
(2) Review Employment Contracts: Ensure all contracts reflect the updated wage provisions, especially for casual, junior, and disabled employees.
(3) Communication with Employees: Inform employees about the upcoming changes to their wages and ensure transparency in how these changes will be implemented.
(4) Training for HR and Payroll Staff: Ensure that all relevant staff are aware of the changes and understand how to implement them correctly.
Further Information
For further details and tailored advice on how these changes impact your organisation, contact Maguire Legal here.