Australia’s minimum wage rises 3.5% from 1 July 2025

Australia’s minimum wage will increase by 3.5% from July 1, 2025, as reported by the Australian Fair Work Ombudsman.

The increase affects both the national minimum wage and the national living wage, with the new base wage set at $948 per week, or $24.95 per hour.

This decision is part of the Fair Work Commission’s 2024–2025 Annual Wage Review and reflects efforts to support low-income workers amidst Australia’s ongoing cost-of-living pressures. It also aims to maintain a balanced outcome for employers navigating economic recovery and inflation.

The national minimum wage applies to employees who are not covered by a modern award or an enterprise agreement.

If you’re unsure which award or agreement applies to your role, the Fair Work Ombudsman offers a user-friendly Pay and Conditions Tool, where you can search for your industry or occupation and view applicable pay rates and conditions.

What are the Implications for Employers and Employees?

According to union leaders, this decision is an important win for Australia’s low-paid workers, many of whom have faced stagnant wages while grappling with the rising cost of groceries, rent, fuel, and essential services.

Someone previously earning $916.90 per week under the current minimum wage will now receive an additional $32.06 per week. Casual and part-time workers, particularly in sectors like retail, cleaning, hospitality, and aged care, are expected to benefit the most.

For employers, the new rates present both an administrative and financial challenge. Small and Medium-sized Enterprises (SMEs), which typically have less expendable resources, are bracing for tighter margins as they adjust their payroll systems and budgets to meet the new requirements.

While the 3.5% increase is lower than some union proposals, industry groups still warn it could intensify existing cost pressures.

Employers should immediately begin preparations to implement the new wage rates. This includes reviewing employee classifications under awards, updating payroll processes, adjusting rosters if needed, and notifying staff of the upcoming changes.

Other Updates to the National Minimum Wage

Alongside wage adjustments, there are also upcoming changes to employer superannuation obligations. From July 1, 2025, the superannuation guarantee, the minimum amount an employer must contribute to an employee’s retirement fund, will increase from 11.5% to 12%

This change means that an employee earning $948 per week will receive an extra $4.74 per week in superannuation contributions.

Pharmacist workers under the Pharmacy Industry Award will also see a further update in their minimum wages, which will be made available on July 1 via the Fair Work Ombudsman’s Pay Guide website.

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