The Fair Work Commission (FWC) has announced a 3.5% increase to the National Minimum Wage and is calling for further action to lift living standards. The increase applies from the first full pay period starting on or after 1 July 2025.
This decision will help ease the pressure on low paid workers who are struggling to cover their basic costs. For too long, wages have failed to keep pace with the cost of essentials like housing, energy, food and health care, leaving low income workers and people who receive income support struggling to keep up, and this decision will help.
The FWC is working to update their tools and resources with the new pay rates. These updates will be available closer to 1 July 2025 and we will endeavor to share widely with the community services industry when they become available.
In the meantime, you can:
- Read the FWC’s news article on Minimum wages increase 3.5% from 1 July 2025 to prepare;
- Use the Pay and Conditions Tool to help check which award applies to you; and/or
- Learn more about minimum pay rates at Minimum wages.
In addition to wage increases, the Superannuation Guarantee rate will rise from 11.5% to 12% as part of the legislated increase under the Superannuation Guarantee (Administration) Act 1992. From 1 July 2025, employers will be required to pay 12% superannuation on ordinary time earnings for eligible employees.
It is worth noting that, while welcome, this wage increase does not make up for the decade-long stagnation of living standards that people doing it tough have endured. We now need further action to boost the incomes of those with the least, starting with urgently raising the rate of JobSeeker and related payments to livable levels.
ACOSS is also calling on the Commonwealth Government to guarantee funding for community service organisations to afford the increased wage bill. This goes to the heart of both the Government’s commitments on essential services and gender equality, given the overwhelming majority of the industry’s labour force is women working at the frontline of Australia’s disadvantage and hardship. Read ACOSS’s full response.