Annual Wage Review 2025

On 3 June 2025, the Full Bench of the Fair Work Commission handed down its annual wage decision, which is a yearly review of the National Minimum Wage order and minimum wages in modern awards.

The Commission held that the National Minimum Wage and minimum wage rates of pay under all modern awards would be increased by 3.5 per cent.

This follows an increase by 3.75 per cent last year and means that the National Minimum Wage will be increased by $0.85 to $24.95 per hour ($948 per 38-hour week).

The decision will directly affect employees who have their rate of pay set under the National Minimum Wage or under a modern award. It will not affect employees employed under enterprise agreements (unless the applicable modern award base rate is higher than the enterprise agreement rate) or those employees receiving higher benefits under a contract of employment subject to the terms of the relevant contract of employment.

The new rates of pay will come into operation from the first full pay period on or after 1 July 2025.

Implications

Employers should review the rate of pay for any employees whose salary is based upon the National Minimum Wage or a modern award. If an increase in an employee’s rate of pay is required by the decision, their wages must be adjusted from the first full pay period on or after 1 July 2025.

The link for the full decision: Annual Wage Review 2025