There has been an announced 3.5% increase to the pay before tax of National Minimum Wage and minimum pay rates under awards, by The Fair Work Commission.
The rise applies from the first full pay period starting on or after 1 July 2025.
BUT, what does this mean for your business….
Even if you pay your employees above the 3.5% increase of pay before tax it is important to be highly conscious of the impact on overtime and penalty rates, which will also rise. It is this rise coupled with award provisions around the span of ordinary hours of work that can catch out employers. Also don’t forget that the super guarantee also rises to 12% on July 1! Double check your remuneration strategies and how your pays are calculated.
No business is immune.
Recently, on 12th June 2025, The Fair Work Ombudsman reported that Griffith University will complete $8.34 million in payment to 5,457 underpaid staff.
Big companies, like Woolworths and Griffith University, have been caught in underpaying employees. Don’t forget that all businesses are vulnerable, no matter their size – small, medium and large.
You must ensure compliance as, even if unintentional, non-compliance can cause significant back payments, penalties and worst case scenario legal action.
Incorporating minimum wage adjustment into yearly salary reviews will aid in decreasing the risk of errors and underpayment.
CIRCLE’s HR team can help ensure compliance, protecting you from excess financial costs and to maintain employee trust.
Written by Abbey Dobson – Research & Marketing
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