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The Fair Work Commission confirmed that the new National Minimum Wage will be AUD$948 per week or AUD$24.95 per hour, starting from the first full pay period starting on or after 1 July 2025.
Australia’s Fair Work Commission (FWC) has handed down its decision on the 2024–2025 Annual Wage Review, announcing a 3.5% increase to the National Minimum Wage and minimum award wages.
This adjustment, effective 1 July 2025, means the new National Minimum Wage will be AUD$948 per week or AUD$24.95 per hour, calculated for a full-time employee not covered by an award or enterprise agreement.
Let’s break down what this means, who it impacts, and what changes to expect beyond the minimum wage hike., with credit to the Fair Work Ombudsman (FWO).
Who is impacted by the minimum wage increase?
The National Minimum Wage applies to employees who are not covered by a modern award or an enterprise agreement.
For the vast majority of Australian workers, however, minimum award wages are the more relevant benchmark. These are covered by legal documents known as awards, which outline minimum pay and conditions based on industry or occupation.
The FWC confirmed that minimum award wages will also increase by 3.5%, with new rates kicking in from the first full pay period starting on or after 1 July 2025. For example, if a business’s pay cycle begins on Wednesday, 2 July, the new rates would apply from that date.
What about enterprise agreements?
If an employee is covered by an enterprise agreement, the new minimum wages may still apply. The base pay rate under the agreement must not be less than the base rate outlined in the relevant award.
To check whether an enterprise agreement applies to you, refer to the guidance provided on the Fair Work website, including tools such as the Pay and Conditions Tool and the List of awards.
Specific changes: Pharmacy Award and superannuation
In addition to the broader wage increase, other workplace changes are also on the horizon:
Pharmacy Award updates
- Minimum pay rates under the Pharmacy Award are set to increase.
- The first adjustment will take effect from the first pay period commencing on or after 30 June 2025.
- The second adjustment will follow, rom the first pay period commencing on or after on 1 July 2025.
Superannuation guarantee increase:
- The superannuation guarantee rate will increase to 12% from 1 July 2025.
- Employers who fail to pay the minimum amount on time and to the correct fund may be liable for the Superannuation Guarantee Charge (SGC).
For more information, read more on the FWO's site or FWC's site.
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