The Fair Work Commission handed down its annual wage review decision on 3 June 2025. Employers operating in Australia should be aware of this and other important changes that may affect them.

Minimum Wage Increase

The Fair Work Commission handed down its annual wage review decision on 3 June 2025.

Starting 1 July 2025, Australia’s National Minimum Wage for adult employees will increase from $24.10 an hour and $915.90 per 38-hour week to $24.95 an hour and $948 per 38-hour week.

Minimum rates under modern awards will also increase by 3.5% on 1 July 2025.

Superannuation

Employer superannuation contributions under Australian superannuation guarantee legislation increase from 11.5% to 12% from 1 July 2025. From 1 July 2026 to 30 June 2027, superannuation contributions will remain at 12%.

Key Action Points for Companies and In-House Counsel

Employers should review their wage rates to prevent any risk of accidental underpayment on 1 July 2025. The penalties for underpaying wages can be severe.