The Fair Work Commission has officially announced the outcome of its 2024–2025 Annual Wage Review, and it’s time for employers to prepare for the upcoming changes. From 1 July 2025, both the National Minimum Wage and minimum award wages will increase by 3.5%
💰 New Minimum Wage Rates
- National Minimum Wage:
From 1 July 2025, the new rate will be $948.00 per week or $24.95 per hour (based on a 38-hour week). - Award Minimum Wages:
All minimum wages under modern awards will also increase by 3.5%, effective from the first full pay period on or after 1 July 2025.
🧾 What This Means for You
If you employ staff under an award or on the minimum wage, here’s what you need to do:
- Update Payroll Systems: Ensure your accounting or payroll software reflects the new rates from the correct date.
- Review Employment Contracts: Especially if you offer base pay close to the minimum or use “all-inclusive” salary packages.
- Communicate with Your Team: Let your employees know about the increase and how it affects their pay.
- Check Your Award: Use the Fair Work Pay and Conditions Tool to confirm the correct award and classification for each employee.
🧠 KBAS Tip
This is a great time to:
- Outsource this payroll review to KBAS Bookkeeping 😄
- Audit your payroll to ensure compliance.
- Review your budgeting and cash flow forecasts to accommodate the increase.
- Stay ahead of Fair Work updates by subscribing to their alerts or following them on social media.
✅ Need Help?
As your bookkeeper, I’m here to help you navigate these changes smoothly. Whether it’s updating your payroll, checking award classifications, or ensuring compliance, I’ve got you covered.
Let’s make sure your business stays compliant and your employees are paid correctly—stress-free.