Australia’s workforce is set for a positive change this July, with the Fair Work Commission confirming a 3.5% increase to the National Minimum Wage and all modern award wages. This uplift, effective from the first full pay period on or after 1 July 2025, is set to benefit millions of Australians by supporting fairer and more sustainable wage growth. The decision was made as part of the 2024–25 Annual Wage Review, which aligns with recommendations from the Australian Public Service Commission (APSC) and highlights a continued commitment to ensuring wages keep up with living costs.
What are the new minimum wage changes that are effective from July 2025?
From 1 July 2025, the National Minimum Wage will rise to:
- $948 per week (based on a 38-hour workweek)
- $24.95 per hour
This change impacts not only employees without an award or enterprise agreement, but also those earning minimum award wages, which represents around 20% of Australia’s workforce. For full-time workers on the minimum wage, it means an increase of $32.10 per week or $0.85 per hour, a welcome boost amid the ongoing cost-of-living pressures.
Why are these changes happening now?
The Fair Work Commission’s latest changes were largely driven by the ongoing pressures due to the cost of living, which affect workers across Australia. With inflation reports now steady at 2.4%, the commission saw an opportunity to boost real wages for low-paid workers, many of whom had struggled to keep up with inflation, which outpaced wage growth.
The commission considered that workers across Australia had been more productive and contributed more value to Australia’s economy than last year. The upcoming superannuation increase, guaranteeing 12% also effective 1st July, was another determining factor behind the decision to increase wages.
Leap29 Perspective
Simon Duff, Director at Leap29, shares his views on the broader impact of the wage increase
“This year’s 3.5% wage increase reflects the reality that cost-of-living pressures in Australia have become a critical issue for workers. While businesses have already been navigating inflationary challenges, it was inevitable that some of the burden would need to be absorbed by industry in the form of higher wages. The adjustment strikes a fair balance—restoring some lost real income without undermining Australia’s strong labour market or long-term business viability.”At Leap29, we understand that any change in employment brings challenges and opportunities. As Australia implements the wage increase, we are ready to support employers and employees with advice tailored to the ever-changing workforce. We are committed to helping you stay ahead by sharing insight and providing the support your business needs in the future.
