July 2025 Minimum Wage Increase: What Employers Need to Know
- Future Accounting
- Jul 7
- 2 min read
New Minimum Wage Rates from 1 July 2025
The Fair Work Commission confirmed that Australia’s minimum wage rose from 1 July 2025, bringing changes employers needed to act on quickly.
Here’s the breakdown of the updates:
The national minimum wage (for award-free employees) increased to $24.95 per hour or $948.00 per week - a 3.5% boost.
Minimum award rates for employees covered by awards has also gone up by 3.5%.
The new rates kick in from the first full pay period starting on or after 1 July 2025.
So, if your weekly pay cycle starts on Wednesday, the new rate applies from Wednesday, 2 July.
What you need to do now to comply with the July 2025 minimum wage increase:
Review your payroll system check for updates and then make sure all the necessary adjustments are in place for all employees. That includes:
Updating hourly rates for affected employees.
Reviewing annualised salaries, especially for employees on awards. A 3.5% increase may mean current salary packages are no longer compliant.
Don’t forget that from 1 July 2025, superannuation also increases to 12%, up from 11.5%. This should be factored into your overall employment costs and salary reviews.
Why This Increase Matters:
Minimum wage increases directly impact your business’s bottom line.
They ensure employees are fairly compensated in line with cost-of-living pressures, but they also mean higher employment costs for you.
Staying across these changes isn’t just about compliance - it’s about planning well, managing cash flow, and maintaining a competitive and legally sound workforce.
Missing, or misapplying, wage updates can lead to underpayment risks, employee dissatisfaction, and penalties from Fair Work.
Need Help Navigating the Changes?
Staying compliant with wage and super changes can be complex. If you're unsure how the July 2025 minimum wage increase impacts your business, our expert accounting team is here to help.
Reach out today to ensure your business stays on top of its obligations and your people are paid correctly.
