As we head into the middle of 2025, there are several important employment law changes already in motion – and more just around the corner. From changes to employee rights to upcoming wage increases, here’s what you need to know.
Here’s a quick summary of key changes:
- Annual Wage Review 2025
New minimum wage rates expected to take effect from first full pay period on or after 1 July 2025 (Fair Work decision due June).
- Paid Parental Leave Expansion
Increases from 22 to 24 weeks from 1 July 2025, with government paid superannuation added.
- Super Guarantee Increase
Super rises to 12% from first pay period on or after 1 July 2025.
- NSW – Portable Long Service Leave
New portable long service leave scheme for eligible community service workers.
- Right to Disconnect
Already in effect for large businesses; extends to small businesses from 26 August 2025 (more information coming soon…)
- Casual Conversion Rights for Small Businesses
Casual employees can request conversion to permanent employment from 26 August 2025 (more information coming soon…)
Now, let’s break the changes down…
July 2025
Government Paid Parental Leave Increase
An increase in the government paid parental leave duration is coming. From 1 July 2025, the Paid Parental Leave (PPL) scheme will increase from 22 to 24 weeks, giving new parents more time at home during those critical early months.
Super Guarantee Increase
From 1 July 2025, the Superannuation Guarantee will increase to 12%. It’s a relatively small jump, but it does require employers to update their payroll systems and ensure contributions are accurate. If you have the HRC in-app contract templates, superannuation amounts will be automatically updated to 12% for employees commencing after 1st July.
Superannuation on Paid Parental Leave
Also, from 1 July 2025, superannuation contributions will be paid on PPL — a significant change aimed at reducing the retirement savings gap, particularly for women and primary caregivers. Under the current system, employees who receive PPL from the government do not receive any superannuation payments during that period, which can negatively impact their long-term financial security. Under the new model, the Australian Government will pay the super on the PPL payments, not the employer. Specifically, Services Australia — the agency that administers Paid Parental Leave — will make a super contribution of 12%, calculated based on the employee’s PPL payments. These contributions will be paid directly into the employee’s nominated superannuation fund, separate from the employer’s usual payroll process. This means you as an employer, won’t be responsible for calculating or remitting super on PPL provided by the government. However, you may still need to contribute if you offer additional paid parental leave through your own workplace policies or enterprise agreements. In that case, super obligations for employer-funded leave continue as usual. This reform is designed to better support parents taking time off work and help close the gender super gap, while keeping the administrative load off employers.
Annual Wage Review
And let’s not forget the upcoming Annual Wage Review, with the Fair Work Commission’s decision expected in June 2025. This annual process considers input from government, unions, and employer groups, aiming to balance cost-of-living pressures with economic conditions affecting businesses. Any changes to the national minimum wage and modern award rates will take effect from the first full pay period on or after 1 July 2025. It is important to plan ahead to review employee pay rates, update payroll systems, and ensure compliance with the new minimum standards once announced.
NSW – Portable Long Service Leave
From 1 July 2025, a new portable long service leave scheme will launch in New South Wales for community service workers. Instead of needing 10 years with one employer, eligible workers can access up to six weeks of paid leave after seven years in the industry — even if they’ve worked for multiple employers. The leave will be paid at ordinary wages (excluding overtime) and doesn’t need to be taken all at once or straight away.
For more information, visit the NSW Government site at the following link:
https://www.longservice.nsw.gov.au/community-services-industry
Award Specific Changes
Wage Increase for Pharmacy Industry Award
In the Pharmacy Industry Award [MA000012], a major wage increase was confirmed following a gender undervaluation review. From 30 June 2025, pharmacists and pharmacy interns will see their minimum pay rates increase by 14.1%, phased in over three years. This decision aims to address the historical undervaluation of work in female-dominated industries and reflects the Fair Work Commission’s broader focus on gender equity across awards.
Review of Children’s Services Award
The Children’s Services Award [MA000120] is also under review as part of the same gender undervaluation case. While changes haven’t taken effect just yet, proposed adjustments to classification structures and pay rates are in motion, with final determinations expected in the coming months.
August 2025
We will provide you with more information on the right to disconnect and casual conversion for small businesses closer to the August deadline…
What do you need to do?
With these changes on the horizon, it’s important to start preparing now. Consider how these updates might impact your staffing, budgeting, and HR practices — especially in relation to parental leave, superannuation, and award compliance. If you’re unsure about what applies to your business, don’t hesitate to contact ER Strategies. Staying informed, asking questions early, and seeking support where needed will help you navigate these transitions smoothly and keep your workplace compliant and confident heading into the second half of 2025.
Need Advice?
ER Strategies are experts in employment compliance and can assist you in managing your employment compliance responsibilities. To discuss your obligations and assistance we can provide, get in touch with us at 1300 55 66 37, or click the button below.
