In a significant move to bolster the earnings of low-paid workers, the Fair Work Commission (FWC) has announced a 3.5% increase to Australia’s national minimum wage. Effective from July 1, 2025, this adjustment will raise the hourly rate from $24.10 to $24.94, translating to a weekly wage of $948 and an annual salary of approximately $51,512 for full-time employees.
The decision is set to benefit around 2.9 million workers across various sectors, including hospitality, retail, healthcare, and administrative services—industries characterized by high levels of part-time and casual employment, often with a significant female workforce.
FWC President Adam Hatcher highlighted that the wage increase surpasses the current inflation rate of 2.4%, marking a real wage gain for employees. He emphasized the necessity of this adjustment to address the erosion of real incomes experienced since July 2021 due to sustained high inflation.
The Australian Council of Trade Unions (ACTU) welcomed the increase, viewing it as a crucial step toward restoring the purchasing power of workers affected by past inflation spikes . Conversely, small business groups expressed concerns over the potential financial strain imposed by rising payroll costs, especially amid existing challenges such as high insolvency rates .
This wage adjustment follows a 3.75% increase implemented in July 2024, reflecting the FWC’s ongoing efforts to balance fair compensation for workers with the economic realities faced by employers.
