The Fair Work Commission (FWC) has announced a 3.5 per cent increase to the National Minimum Wage (NMW) and award minimum wage rates as part of the 2024-2025 Annual Wage Review.
The increase is effective from the first full pay period starting on or after July 1, 2025 and will apply to all award minimum wage rates, including those under the Vehicle Repair, Services and Retail Award, Clerks Private Sector Award, and Manufacturing and Associated Industries and Occupations Award.
Enterprise Agreements
HVIA Employer Assist provider Industry Legal Group says employers operating under a registered enterprise agreement must ensure base rates of pay are not less than the relevant award minimum rates or the NMW, as applicable.
If the agreement rate falls below the applicable minimum, the agreement is taken to provide for the higher rate.
Award Free Employees
From July 1, 2025, the revised NMW will be $948.00 per week or $24.95 per hour. This applies to employees not covered by an award or registered agreement.
Superannuation Guarantee
The Superannuation Guarantee rate will increase from the current rate of 11.5 per cent to 12 per cent from July 1, 2025.
Pay Guides
Employer Assist will provide members with access to updated pay guides in due course, once the FWC publishes the variation determinations.
Employer Action Required
Employers should review current remuneration arrangements to determine whether adjustments are required in light of the increased minimum wage and superannuation obligations.
Where annualised salary or all-inclusive pay structures are in place, employers must ensure these continue to satisfy minimum statutory entitlements. Employment contracts should include properly drafted set-off provisions where appropriate.
If employees are already being paid above the applicable minimum rate, it may be possible to absorb the increase, depending on the terms of the relevant industrial instrument and the employee’s contract. Specific legal advice is recommended to confirm whether absorption is permitted in your circumstances.
This is also a timely opportunity to review and update employment contracts more broadly. A legal review is recommended to ensure compliance and to implement any necessary amendments or tailored provisions.
Contact Employer Assist
If you need assistance, contact Employer Assist on (07) 3376 6266 or hvia@employerassist.com.au.