The Fair Work Commission made the Annual Wage Review 2025 Decision on 3 June 2025. The decision increased the National Minimum Wage by $32.10 per week, amounting to an increase of 3.5 per cent.
The decision also increases modern award minimum rates by 3.5 per cent.
The increase to the National Minimum Wage and the modern award minimum rates will be effective from 1 July 2025.
Actions agencies need to take
Commonwealth employers have obligations under the Fair Work Act 2009 to ensure their employees are paid correctly. The hourly base rate of pay for an employee must not be less than the hourly base rate payable under the award which covers that employee.
Agencies should ensure that employees are paid at least the new award minimum pay rates. As an example, the minimum award hourly pay rate for an APS Level 1 employee will increase from $26.60 to $27.53 on 1 July 2025.
The Fair Work Commission will update the minimum pay rates in awards. Agencies need to ensure payroll processes are up to date and accurate and to avoid any potential for underpayments. Information on the correction of underpayment of wages can be found in this APSC Circular.
Agencies should also be aware that the adjustment from this decision will also flow through to employees engaged through the Supported Wage System. Awards will be updated accordingly.
Further information and advice
For further information, please contact the Australian Public Service Commission at workplacerelations@apsc.gov.au or your agency’s relationship manager.
