The Fair Work Commission has today handed down its Annual Wage Review Decision under the Fair Work Act 20091 (Cth). The national minimum wage and award minimum rates of pay will be increased by 3.5%.
Increases to Modern Awards
The Commission has adopted a percentage increase of 3.5% to award minimum rates of pay for each classification level2.
The Commission will publish draft determinations for modern award pay increases in the coming weeks. Employers should monitor the Fair Work Commission’s website so it can review these determinations when they are published.
National Minimum Wage
The national minimum wage will be increased to $24.95 per hour, or $948.00 per week3. This rate has been calculated on the basis of a 38-hour week for a full-time employee at the C13 level. You should check your award to determine whether it contains a C14 level for introductory employees. The national minimum wage order also contains specific provisions for award/agreement free employees:
- with a disability;
- who are junior employees; or
- apprentices and employees to whom training arrangements apply.
The casual loading has been maintained at 25% for award/agreement free employees and in the modern awards.
Effect of Decision
These changes affect the minimum rates only. If you are paying an over-award rate, you may be able to absorb the increase into any over award payments. We recommend that you seek advice before deciding to absorb the increase.
The increase may also affect employers covered by enterprise agreements if they are expressly linked to an Award rate or Fair Work Commission increases, or where the minimum base rate of pay in the agreement falls below the equivalent minimum base rate in the Award—it is crucial for employers to check their enterprise agreement minimum rates of pay. Again, we recommend that you seek advice about your obligations if you are unsure.
Require further information/assistance?
This EMA Note is not comprehensive advice about your situation and does not cover all your obligations. If you require further information or advice, please contact your Consultant.
- Annual Wage Review 2024–2025 [2025] FWCFB 3500 (“Decision”). ↩︎
- Decision [154] ↩︎
- Decision [152]. ↩︎
