Millions of Aussies will get a pay rise in July: Are you one of them?
The minimum wage will increase by 3.5% in the new financial year, which will primarily benefit healthcare, hospitality, retail and admin roles.
The Fair Work Commission has today announced its decision to increase the national minimum wage by 3.5% from 1 July 2025.
The Commission reviews the national minimum wage once per year and usually delivers its decision for the upcoming year in June.
How much will the minimum wage increase by?
The national minimum wage will increase from $24.10 per hour to $24.95.
The weekly minimum wage (based on a 38 hour week) will increase from $915.90 to $948, a jump of $32 per week.
If you work part time at 2 full days per week, it's an extra $13.60 per week. If you work 3 full days, it's an additional $20.40.
For full time workers on the minumum wage, that's an increase of $1,664 over the year.
Notably, this 3.5% increase is higher than the latest inflation rate of 2.4%.
However, according to the Fair Work Commission statement, due to higher inflation over the past few years today's wage increase still puts workers behind in real terms.
"The principal consideration which has guided our decision is the fact that, since July 2021, the real value of modern award wages...has declined by 4.5 percentage points relative to inflation."
The Commission say's today's increase will go "at least some of the way towards correcting what has happened over the last four years."
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Who will receive this pay increase?
This will benefit millions of Australians who are paid on award wages.
These are people who are paid in accordance with a national award for their particular role and industry, rather then private sector workers who instead negotiate their rate of pay directly with their employer.
The bulk of the workers on award wages work in accommodation and food services (such as hospitality roles), health care and social assistance, retail trade and administrative and support services.
According to the Commission, the majority of workers on award rates are women in part-time and casual low-paid roles.
However it's not just workers who will benefit from this wage increase - anyone who is receiving government payments set at the national minimum wage will see their payments increase too.
This includes, for example, those set to receive parental leave pay from the governemnt in the new financial year.
If you're on an award wage you don't need to do anything in order for this increase to be applied - it'll be applied to you automatically in the new financial year.
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