Annual Wage Review 2025-26 — $24.95/hr NMW

Fair Work Commission decision [2025] FWCFB 3500 (Annual Wage Review 2024-25), handed down June 2025, effective 1 July 2025.

What was the 2025-26 Annual Wage Review decision?

The Fair Work Commission's 2025-26 Annual Wage Review decision, handed down June 2025 ([2025] FWCFB 3500 (Annual Wage Review 2024-25)), lifted the National Minimum Wage by 3.5% to $24.95/hr ($948.00 for a 38-hour week) and modern award minimum rates by 3.5%, effective 1 July 2025.

3.5% increase applied uniformly across the NMW and all modern award rates, including junior, apprentice and trainee rates. Some weekly transition adjustments for the SCHADS Award and a handful of others where work-value cases were running in parallel.

The Panel's reasoning

• Cost-of-living pressures had moderated from the 2023-24 peak but remained above the RBA target band.
• Real wage decline since 2021 had been partially recovered; the Panel set a rise that protected against further real-wage decline without adding meaningfully to inflation.
• Productivity growth remained subdued, weighing against a larger rise.
• Labour market remained tight but with early signs of softening.

Economic context

Annual CPI was 2.4% to March 2025; underlying inflation 2.9%. The Panel weighs CPI, labour-market conditions, productivity, relative living standards of award-reliant employees, and submissions from the Federal Government, ACTU, ACCI, ABI and Australian Industry Group when reaching its decision.

Who decided this?

The expert panel of the Fair Work Commission, chaired by President Adam Hatcher, with Vice President Asbury, Deputy President Wright, Commissioner Hampton, plus expert panel members. The expert panel meets between March and May each year, hears submissions, and publishes its determination in early June.

What this meant for your pay

If you were paid the National Minimum Wage in 2025-26, your gross weekly pay for a 38-hour week was $948.00 (up from the previous $24.10/hr rate). If you were paid a modern award rate, your minimum hourly rate rose by 3.5% from the previous year.

If you were paid above the award minimum, your employer was not required to pass on the wage review increase — though many do, particularly where the award rate has now caught up to your above-award rate.

To calculate the exact impact on your pay, use the Annual Wage Review impact calculator or ask FairWork Mate AI about your specific award and classification.

Source

Fair Work Commission Annual Wage Review 2025-26 decision, [2025] FWCFB 3500 (Annual Wage Review 2024-25). Full decision available at fwc.gov.au/annual-wage-review.