Award rate increase announced: 3.5% increase from 1 July 2025

On 3 June 2025, it was announced that the Fair Work Commission’s panel of experts approved an increase to the Modern Award rates of pay of 3.5%. This increases the National Minimum Wage from $24.10 to $24.95 per hour, as well as raising all Modern Award rates effective from 1 July 2025. The first full pay period on or after 1 July 2025 must be paid at the increased rate.

The Commission will now issue draft determinations to vary the Modern Awards including their adjustment of the wage related and expense related allowances. Our Wage Bulletins will then be updated and released by the end of this month. If you would like to be emailed the updated Wage Bulletins, please contact us by phone or email to be added to the list.

There are other key changes on 1 July 2025 for businesses to note:

•    Super guarantee rate will increase from 11.5% to 12%

•    Maximum super contributions base will decrease from $65,070 to $62,500 per quarter

•    High income threshold will increase from $175,000 to $183,000 per annum

•    Compensation cap in an unfair dismissal claim will increase from $87,500 to $91,500

•    Tax free amount for redundancy payment will increase, from $12,524 plus $6,264 per year of service to $13,100 plus $6,552 per year of service

Disclaimer: This summary is a guide only and is not legal advice. For more information, call ECA Legal on 6241 6129 or email ecalegal@ecawa.org.au