Written by: Hugo Morris
As we approach the new financial year, employers should get ready for important updates to the National Minimum Wage and superannuation guarantee rate.
They both take effect from the first full pay cycle on 1 July 2025.
Wage & Super Changes Coming 1 July
The Fair Work Commission confirmed there will be a 3.5% rise in the National Minimum Wage. Here are the details:
- The National Minimum Wage will increase to $24.95 per hour (or $948 per week), up from $24.10.
- All modern award rates will increase accordingly.
- The superannuation guarantee will rise to 12%, up from 11.5%.
These adjustments come after several years of cautious increases due to high inflation, with this year marking a return to stronger wage growth as economic conditions stabilise.
4 Tips to Stay Compliant With the Change
Back in 2023, the Commission highlighted that real wages have slipped by 4.5% since mid-2021, with inflation peaking in late 2022.
However, the Commission decided to boost wages more meaningfully with the Reserve Bank’s recent signalling of a more stable outlook on inflation.
If you are an employer, we recommend the following steps to stay compliant.
1. Review Award Coverage
Make sure you’re across which awards apply to your staff, and that updated minimum rates are applied from your first full pay cycle on or after 1 July, 2025.
Example: If your pay week starts on Wednesday, the new rates kick in from Wednesday, 2 July.
2. Check Salaried & Flat Rate Employees
For staff paid “above the award,” verify that their total package still meets the new minimums. This includes allowances, penalties, and overtime.
3. Update Super Payments
Adjust your payroll settings to ensure the 12% super guarantee is correctly applied from 1 July, 2025.
4. Communicate with Your Team
Let your employees know about the upcoming changes to avoid confusion and demonstrate transparency.
Paying above the award doesn’t automatically mean you’re compliant. If challenged, employers must be able to clearly demonstrate that total remuneration meets or exceeds award entitlements. Getting it wrong can lead to underpayment claims, penalties, and damage to your brand.
Our employment law and accounting teams at Greenhalgh Pickard can help you audit your current arrangements and prepare for these changes. We offer integrated legal and accounting advice tailored to your business.
Disclaimer:
The information contained in this article is for general informational purposes only and is not intended to provide legal advice or substitute for the advice of a professional. This information does not consider your personal circumstances and may not reflect the most current legal developments. Should you need advice, please contact our firm for targeted information relating to personal your situation.
Greenhalgh Pickard’s Employment Law Team
