The Fair Work Commission has formally handed down its annual wage review decision, which increases both the national minimum adult wage and the modern Award rate by 3.5%.
This means that from 1 July 2025 the new adult National Minimum Wage for full-time (38 hour working week) employees will be $948.00 per week, or $24.95 per hour. The related increases to the 120+ Award minimum rates of pay will be determined and rolled out over the coming weeks, along with adjustments to Junior, Trainee and Apprentice rates of pay, and Award allowances, all to be delivered prior to the 1 July 2025 operational date.
VMA CEO, Kellie Northwood says: “Given the current domestic economic environment, including ongoing low national productivity rates and increased
VMA CEO Kellie Northwood input costs, the VMA sought that any increase be moderated against those factors. The outcome from the Commission’s decision is marginally higher than expected.”
“We realise there are cost of living factors which affect lower paid workers, however a significant increase would put pressures on employers and negatively affect inflation. Given the rate of inflation has only recently fallen into the RBA’s target rate of 2-3%, we did not see justifiable rationale to support ACTU’s claim for a 4.5% increase to the minimum wage.”
The VMA has provided members with a breakdown of the decision and will work with the Fair Work Commission over the coming weeks on further communication re the Award Summaries to confirm calculations for inclusion in relevant industry Awards before they become operational from 1 July.
