The Fair Work Commission (FWC) has released its Annual Wage Review 2024–25 decision, confirming increases to the national minimum wage and modern award minimum wages. These changes will apply from the first full pay period on or after 1 July 2025.
Key outcomes of the decision include:
- The national minimum wage will increase 3.5% to $24.95 per hour (equivalent to $948.00 per week for full-time employees).
- Minimum rates under all modern awards will also rise, with updated pay guides and classification summaries to be published by the FWC over the coming weeks.
This increase applies to employees who are:
- Paid the national minimum wage; or
- Covered by a modern award or an enterprise agreement linked to award rates.
Important Employer Guidance:
We strongly recommend waiting for the official updated pay guides from the Fair Work Commission before making any changes to pay rates or payroll systems. These guides are expected to be released in mid to late June and will provide the precise rates for each classification under every modern award.
In the meantime, employers should:
- Identify which employees may be affected by the increase.
- Ensure payroll systems are ready to be updated once new rates are confirmed.
- Avoid applying estimates or unofficial figures to avoid accidental overpayments or non-compliance.
- Prepare to implement new rates from the first full pay period on or after 1 July 2025.
We will provide a further update, including detailed instructions and links to the updated pay guides, as soon as they become available.
Non-compliance with the new minimum wage requirements can lead to underpayment breaches and penalties under the Fair Work Act.
For more information, visit the Fair Work Ombudsman’s website: https://www.fairwork.gov.au
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