Fair Work Commission Announces 3.5% Minimum Wage Increase for 2025/26

Fair Work Commission Announces 3.5% Minimum Wage Increase for 2025/26

A square digital graphic with a professional, corporate design in dark blue, red, and white. The top half features bold text stating “MINIMUM WAGE IS GOING UP” followed by bullet points with key information: “Effective 1 July 2025,” “+3.5% Increase | $24.95/hr | $948/week,” and “Super Guarantee also rising to 12%.” Below the text, a red banner reads, “We’ll Help You Stay Compliant.” The bottom half shows a serious-looking man in business attire reading a document at his desk, with a laptop and clipboard in front of him and a tidy office background.

On 3 June 2025, the Fair Work Commission handed down its minimum wage decision, which provides for an increase of 3.5% to the base rates of pay in the modern awards, as well as the national minimum wage.

As a result, the national minimum wage will increase from $24.10 per hour ($915.90 per week) to $24.95 per hour ($948.00 per week), effective 1 July 2025.

Superannuation Guarantee

From 1 July 2025, there will also be a 0.5% increase to the superannuation guarantee rate, rising from 11.5% to 12%.

Employers should review their current minimum wages to ensure they account for:

  • The increase to the superannuation guarantee
  • The updated national minimum wage rate

Remedying Gender-Based Undervaluation

Recent amendments to the Fair Work Act require the Fair Work Commission (FWC) to consider the need to achieve gender equality when setting minimum rates of pay within modern awards.

The FWC is currently reviewing select modern awards and classifications and is proposing amendments to address potential gender-based undervaluation.

Pharmacists under the Pharmacy Industry Award 2020 are the first confirmed beneficiaries and will receive:

  • A 14.1% increase to their minimum wage rate over the next three years, in addition to the 3.5% increase to the national minimum wage.

Annual Wage Updater Service

MST Lawyers offers an Annual Updater Service to provide businesses with a summary of minimum wage rates applicable in the 2025/26 financial year.

Businesses that register for the Annual Updater Service will receive:

  • A summary of new minimum wage rates for each job classification contained in the relevant modern award or, if applicable, in its registered workplace agreement.

For more information, please contact our Employment Law team by email or by telephone at +61 3 8540 0200.

See for more detailed info:  https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2024-2025

Facebook
LinkedIn
Tweet
Email

Share:

This field is for validation purposes and should be left unchanged.
Get Advice on: Fair Work Commission Announces 3.5% Minimum Wage Increase for 2025/26

Need some advice? The first 15 minutes is free.

 Book a consultation using our contact form or please contact our office on (03) 8540 0200.

Recent Posts