Wage increase for National Minimum Wage and Modern Awards – 1 July 2025

wage rates and allowances increase

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On 3 June 2025, the Fair Work Commission handed down its decision to increase the National Minimum Wage and modern award rates by 3.5%.  

When does the increase take effect? 
The increase takes effect from the first full pay period commencing on or after 1 July 2025. 

Who does the increase apply to? 
The increase applies to: 

  • employees on the National Minimum Wage 
  • employees covered by modern awards, and
  • some employees under Enterprise Agreements, if the base rate falls below the updated award rate. 

What if your employees are paid above the minimum award rate? 
If your employees are paid above award rates, they must still be “better off overall” than the minimum award entitlements. You should review your employee wages to ensure they haven’t unintentionally fallen below the new minimum wage. 

What if your employees are covered by an Enterprise Agreement?
If your employees are covered by an Enterprise Agreement, you should ensure that the base rates of pay in your enterprise agreement do not fall below the new minimum award wage.  If they are lower, the wage increase may still apply. 

NatRoad members can log into the Member Portal here to see detailed tables and information on the wages and allowances.