The national minimum wage has increased today, with the Fair Work Ombudsman calling on employers to ensure their staff get their 3.5 per cent boost on or after July 1.
The new national minimum wage applying from today is $948 per week (based on a 38-hour week for a full-time employee), or $24.95 per hour. This is an increase from the 2024-25 rates of $915.90 per week and $24.10 per hour.
Casual employees entitled to the national minimum wage must receive at least $31.19 per hour, which includes the 25 per cent casual loading.
The 3.5 per cent increase also applies to the minimum wage rates within awards. About 20.7 per cent of all employees in Australia are paid at the minimum wage rates in industry and occupational awards.
Fair Work Ombudsman Anna Booth said FWO provides information, tools and support to employees to help them pay employees correctly.
“Employers and employees can use our free Pay Calculator and pay guides to check the minimum pay rates that apply from today, or they can contact us directly for assistance,” Booth said.
“Employers must apply the new minimum wage immediately from the first full pay period on or after 1 July to eligible employees.
“Employers and employees can also use our Pay Calculator to check which award applies to their industry or occupations, or contact us for help.”
The national minimum wage increase was announced by the Fair Work Commission (a separate entity to FWO) earlier this month, with some industry peak bodies calling the lift too high.
Australian Industry Group CEO Innes Willox said it was higher than necessary “given Australia’s abysmal productivity.”
"Australia's economy is muddling through the lowest period of growth since the recession of the early 1990s,” Willox said. “Business margins are falling, private sector employment and investment is weak, while productivity is barely moving. Uncertainty arising from global tariffs and turmoil is also beginning to weigh on the outlook.”
Meanwhile, the Australian Council of Trade Unions (ACTU) was initially calling for a 4.5 per cent lift in the national minimum wage, but has since accepted the 3.5 per cent lift.
ACTU secretary Sally McManus said no worker should miss out on money they are legally entitled to.
“But the data shows that one in ten adult workers are receiving at or below the legal minimum,” McManus said.
“That’s why we are urging all Australians to check their pay and contact their union if they feel something is off.
“A real wage increase for 3 million workers will make an important difference to working people’s lives. Pay increases were fought for by unions, as was the payment of super on parental leave and the extra two weeks.
“We have also finally reached 12 per cent superannuation, which was bought about because of the partnership between the ACTU and Labor Governments.”