2025 Minimum Wage Increase – What It Means for Your Business

The Fair Work Commission has confirmed that the national minimum wage will increase by 3.5% from 1 July 2025.

These increases will come into effect from the first full pay period on or after 1 July 2025.

This means the new minimum wage will be:
💰 $24.95 per hour
💰 $948.00 per week (based on a standard 38-hour week)

This change impacts all employees who are paid the national minimum wage or covered by a modern award. Most awards will also be updated over the coming weeks to reflect this increase, so it’s important for employers to keep an eye out for those announcements.

What should employers do now?

1. Review current pay rates
   Make sure employees on minimum or award wages are paid at or above the new rates from 1 July.

2. Check for award updates
   Modern awards will be updated shortly. Employers must ensure they’re using the most current version from the Fair Work Ombudsman. We anticipate rates of pay will become available progressively, however some rates may not be available until after 1 July 2025.

3. Update payroll systems
   Be sure your payroll software reflects the correct rates before processing the first pay period in July.

4. Seek advice if needed
   If you’re unsure whether your employees are affected, or need help reviewing their pay structure, it’s worth reaching out to your bookkeeper or HR advisor.

At Luxe Advisory, we’re already across these changes and are here to help our clients stay compliant and confident heading into the new financial year. If you need help reviewing pay rates or award classifications, don’t hesitate to reach out.

📌 Stay up to date by visiting www.fairwork.gov.au or speak with your trusted payroll professional.