The Fair Work Commission (FWC) has announced a 3.5% increase to the National Minimum Wage and all modern award minimum wage rates, effective 1 July 2025.
This makes the new national minimum wage $948.00 per week or $24.95 per hour for a 38 hour week, effective from the start of the employee’s first full pay period on or after 1 July 2025. Casual loading is 25 per cent for award/agreement-free employees.
This decision forms part of the Commission’s Annual Wage Review, a statutory requirement under the Fair Work Act 2009. While the National Minimum Wage affects a small group, the adjustment to modern award wages directly impacts approximately 20.7% of Australian employees, many of whom are low paid, part-time, casual, and disproportionately female.
The key motivation behind this year’s increase is to address a 4.5% decline in real wages for modern award reliant employees since 2021. Inflationary pressures had prevented earlier corrective action, but with inflation now returning to the Reserve Bank OF Australia's target range (2–3%), the Commission determined that restoring real wage value is both timely and necessary.
Industries most affected include Retail, Accommodation and Food Services, Health Care and Social Assistance, and Administrative Support Services, where award reliance is highest. Despite these challenges, the Commission concluded that Australia’s strong labour market, steady profits in the non-mining sector, and economic growth forecasts support the wage rise.
The FWC also reaffirmed its commitment to gender pay equity, confirming it will proceed with a review of professional award classifications to address gender based undervaluation.
Employees can review specific award updates on the Fair Work Commission website at https://www.fwc.gov.au
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Source:
Fair Work Commission. (2025). Annual Wage Review 2024–25 – Decision. Reviewed from: https://www.fwc.gov.au/documents/resources/annual-wage-review-2025-decision-announcement.pdf and https://www.fwc.gov.au/documents/resources/2025fwcfb3500.pdf
