A 3.5% increase to Australia’s national minimum wage, effective from 1 July 2025.

The Fair Work Commission has announced a 3.5% increase to Australia’s national minimum wage, effective from 1 July 2025. This adjustment raises the hourly rate from $24.10 to $24.95, equating to a weekly wage of $948.00 and an annual salary of $49,296.00 for full-time workers.   

This wage increase surpasses the current inflation rate of 2.4%, resulting in a real wage growth of 1.1% for approximately 2.9 million Australian workers whose pay is determined by awards. The decision aims to alleviate cost-of-living pressures and restore purchasing power for low-paid workers, particularly in sectors like hospitality, retail, healthcare, and community services.  

Government officials, including Minister for Employment and Workplace Relations Amanda Rishworth and Treasurer Jim Chalmers, have welcomed the decision, highlighting its positive impact on workers and the broader economy. However, some business groups have expressed concerns about the potential financial strain on small businesses.   

This marks the third consecutive year of real wage increases under the Albanese Labor Government, with the national minimum wage rising by a total of $4.62 per hour since 2022.