Australia’s Fair Work Commission has announced the National Minimum Wage and award wages will increase by 3.5 per cent from 1 July 2025, following the annual wage review.
This increase will manifest in the rise of the minimum wage to $24.95 per hour, which is a rise of $0.85 per hour.
For someone working a 38-hour week, this will result in an increase of $32.10 per week, or $1669.20 per year to an annual wage of $49,296.
With annual inflation figures measured at 2.4 per cent, this 3.5 per cent pay rise marks a real wage increase of 1.1 per cent for all minimum wage workers.
The prior annual wage review also saw the Fair Work Commission award an above inflation 3.75 per cent increase.
Federal Minister for Employment and Workplace Relations Amanda Rishworth has labelled the decision as a win for workers.
“I welcome the Fair Work Commission’s decision to increase the National Minimum Wage and award wages,” Rishworth says.
“A real wage increase provides further relief to our lowest paid workers who continue to face cost-of-living pressures. The panel’s decision will benefit up to 2.9 million Australian workers who have their pay set by an award.”
The Council of Small Business Organisations Australia (COSBOA) says the above inflation increase will add pressure on already stretched margins of small businesses.
“The decision to increase award wages by 3.5 per cent – above inflation – will land squarely on the shoulders of Australia’s 2.5 million small businesses, who are already facing skyrocketing costs in energy, rent, insurance, and inputs,” COSBOA says.
“From higher payroll tax to superannuation increases and workers comp, the ripple effect is real – and many business owners will have no choice but to absorb the cost personally.
“As the largest private sector employer, small businesses deserve more consideration in wage-setting decisions.”
The rise to the minimum wage has followed the release of figures by CreditorWatch that one in ten hospitality businesses in Australia shut down over the past 12 months, however insolvencies were starting to plateau as of April 2025.
The states with the highest rates of closure were South Australia (10.8 per cent), Queensland (10 per cent), and Victoria (9.9 per cent).
Data released by Statista indicates there were over 55,000 cafés in Australia at the end of 2024.
