The Fair Work Commission has this morning approved a 3.5% increase in all award rates and the national minimum wage. The new minimum pay rates will apply from the first full pay period on or after 1 July 2025.
The decision will lift the national minimum wage from $915.90 to $948 a week and from $24.10 to $24.95 an hour.
This decision comes following the consideration that since July 2021, employees who are reliant on modern award minimum wages or the national minimum wage have suffered a reduction in the real value of their wage rates. This reduction in the real value of wages has been caused by the spike in inflation which commenced in 2021 and peaked in late 2022.
The FWC has acknowledged that because of inflation, “the result has been that living standards for employees dependent on modern award wages have been squeezed and the low paid have experienced greater difficulty in meeting their everyday needs.”
The increase in wages seeks to sustain the labour market with continuing employment growth.
For any further information or enquiries, do not hesitate to contact the BetterHR Advice team.
