Minimum Award Wage Increases from 1 July 2025

The Fair Work Commission has announced a 3.5% increase to minimum Award wages, effective from the first full pay period after 1 July 2025.

While there is still a few weeks before these changes are in play, and the updated Modern Award Pay Guides are not yet released, now’s the time to get your HR compliance sorted and understand the impact for your team or business.

What you need to know

• Loadings and allowances – Importantly, this increase also applies to many loadings and allowances. Items such as personal vehicle usage rates as well as tool, uniform, first aid allowances are all likely to get a boost.
• Award changes – Some Awards may have other updates besides pay. If your team is covered by an Award, it’s worth checking for other tweaks.
• Is it really "Above Award" - Modern Award rates have increased 13% over the last 3 years and a salary that was historically ‘above Award’ may no longer be.

What should you do?

• Check which Award(s) apply to your team, if any.
• Review your team’s current pay rates against the new minimums.
• Don’t forget any allowances or loadings that also apply.
• For some businesses, we recommend undertaking a BOOT (Better Off Overall Test) to ensure the salaries you're paying cover all the Award entitlements you're expecting them to.

Don't forget superannuation changes

• As it has for the last few years, the employer superannuation guarantee rate will also be increasing by a further 0.5%, up to 12%, from 1 July 2025
• Check your payroll software is automatically applying this increase or reach out to your accountant or provider to confirm.

Need some HR help?

Navigating HR and pay compliance can be overwhelming. If you're wading through spreadsheets, crunching numbers, and trying to make sense of a whole heap of acronyms, we're here to make it easier.

We can help with decoding Awards and agreements, reviewing current pay rates and calculating increases. Get in touch.

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