Annual Wage Review Decision 2025 [2025] FWCFB 3500 (pdf)
Citation: [2025] FWCFB 3500
At a glance
- Awards cited
- MA000047, MA000115, MA000120, MA000003, MA000028, MA000027, MA000034, MA000035, MA000012, MA000104
What happened
The Fair Work Commission conducted its Annual Wage Review for 2025, mandated by the Fair Work Act 2009. The review considered factors like national economic performance, gender equality, workforce participation, living standards, and the needs of low-paid workers. Submissions were received from various parties including employer and union organisations. Approximately 20.7% of Australian employees are covered by modern awards, disproportionately comprising women, part-time workers, casuals, and those with lower incomes.
What was decided
The Fair Work Commission decided to increase the national minimum wage (NMW) and all modern award minimum wage rates by 3.5%, effective from July 1, 2025. This decision aims to address a decline in the real value of modern award wages due to inflation since 2021. The commission considered factors such as sustainable economic conditions, labour market strength, and productivity growth. They noted that postponing action could entrench lower living standards for low-paid workers.
What it means for employers
Employers covered by modern awards need to factor in a 3.5% wage increase for relevant employees from July 1, 2025. This may require adjustments to budgets and potentially impact business profitability. The decision highlights the importance of monitoring economic conditions and their impact on wages.
What it means for employees
Employees covered by modern awards will receive a 3.5% wage increase from July 1, 2025. This aims to improve living standards for low-paid workers who have experienced a decline in real wages due to inflation.
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This summary was drafted from the published decision and reviewed before publishing. It is general information, not legal advice. For your specific situation, speak to the Fair Work Ombudsman (13 13 94) or a qualified lawyer. About these summaries & corrections →