Your Guide to the 3.5% National Minimum Wage Increase in 2025

The minimum wage in Australia increased on 1 July 2025—rising from $24.10 per hour to $24.95 per hour. This means an extra $32.30 per week for millions of Australians. The rise constitutes a 3.5% increase and comes amid the rising cost of living crisis affecting the country.

Minimum award wages have also increased by 3.5%. Awards are legal documents that set minimum pay rates and employment conditions in various industries covering millions of Australian workers.

So, what does this mean for business owners? Keep reading to find out more about minimum pay in Australia, and how the recent increase affects business owners. 

Australian minimum wage increase

The minimum national wage in Australia for full-time employees is now $948 per week. The national minimum wage applies to employees not covered by an award or enterprise agreement.

The Fair Work Commission (FWC), whose expert panel sits every year to review minimum wage, said the decision to increase the national minimum wage was made because living standards for low-paid workers have been squeezed in recent years due to inflation. 

The increase meant businesses had to begin paying the national minimum wage from the first full pay period after 1 July 2025.

Award minimum wage increase

In line with the Australian minimum weekly wage increase, modern award minimum wages have also increased by 3.5%. 

For example, let’s say an employee works under the Manufacturing Award and earned a weekly wage of $882.20 before 1 July 2025. As this is below the new adult minimum award wage of $913.10, the employee would receive a 3.5% increase—taking their new weekly wage to $913.10, an increase of $30.90 per week.

Similar to the national minimum wage increase, award wages will get a proportionate increase. This includes junior, apprentice and supported wages that are based on adult minimum wages.

How often does the minimum wage change in Australia?

Each year, the Fair Work Commission conducts an annual wage review, which includes assessing the national minimum wage and minimum pay rates under various awards. The decision to adjust the minimum wage in Australia per hour is based on a range of economic factors, including inflation, employment levels, and overall economic conditions.

This table outlines the wage increases over the last 5 years:

What will change for business owners?

The 2025 Australian minimum wage monthly increase also affects superannuation payments.

Superannuation payments are employer contributions to an employee’s retirement fund, calculated as a percentage of their ordinary earnings. As of 1 July 2025, the superannuation guarantee rate has increased to 12%, meaning businesses must now contribute 12% of eligible employees’ wages to their super fund—regardless of how much they earn.

The SG rate has now reached the legislated target of 12%, and no further increases have been announced.

Keep up to date with QuickBooks

The FWC meets annually, meaning that business owners must pay attention to updates to ensure they are legally compliant year on year. For example, the recent minimum wage and superannuation increases became law from the first full pay period on or after 1 July 2025.

Employers have enough to worry about keeping their employees happy, without dissecting the constantly changing obligations regarding pay. Ultimately, they want to compensate employees fairly without any fuss.

This is where QuickBooks can help. Quickbooks Payroll makes it easy to keep up with FWC updates, by automatically calculating pay rates and super. 

QuickBooks Payroll makes payroll a breeze—taking care of all the maths, staying compliant with the Australian Tax Office (ATO), Single Touch Payroll (STP), and whatever changes come in from the FWC.

Furthermore, QuickBooks also makes it convenient for employees, with easily accessible payslips and forecasting to help them keep track of their earnings.

Check out the Payroll price plans or try our service during a free 30-day trial to see how Payroll can provide assistance and remove the payroll burden for business owners.