Minimum Wage to Rise by 3.5% from 1 July 2025: What Employers Need to Know

The Fair Work Commission has confirmed a 3.5% increase to the national minimum wage, effective from 1 July 2025.

This annual adjustment will see the minimum hourly rate rise from $24.10 to $24.95, providing affected workers with a weekly increase of approximately $32, or between $1,536 and $1,664 more annually (depending on the number of hours worked).

This change applies to employees covered by the national minimum wage as well as those under modern awards that use minimum wage benchmarks. 

If your staff are currently on award or minimum rates, you must review your payroll setup to ensure compliance from the first full pay period on or after 1 July.

What You (The Employer) Should Do Now:

• Check pay rates: Review all employee wages against the new minimums and award classifications.

• Update payroll systems: Ensure your software reflects the updated rates before your next pay run in July.

• Communicate with staff: Let affected employees know about the change and how it may impact their pay.

• Monitor compliance: Stay up to date with Fair Work guidance to avoid underpayment risks.

Need help adjusting payroll or understanding award obligations? Reach out to your accountant or HR adviser.