Sheltons Group Legal – an Australian law firm based in London
The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and minimum award wages.
The increase will take effect from 01 July 2025.
The Commission’s decision to increase the minimum wage by 3.5% was primarily guided by the fact that “since July 2021, the real value of modern award wages has declined by 4.5 percentage points relative to inflation as measured by the Consumer Price Index (CPI)” (Annual Wage Review Decision [2025] FWCFB 3500).
National Minimum Wage
For employees not covered by an award or registered agreement, the new National Minimum Wage will be AUD 948 per week, or AUD 24.95 per hour.
Minimum Award Wages
Minimum wages in modern awards will also increase by 3.5%.
Superannuation Guarantee
The superannuation guarantee will also increase from 11.5% to 12% from 1 July 2025.
This means employers will need to contribute a minimum of 12% of an employee’s ordinary time earnings to their super. This increase represents the final step in the legislated gradual increases to the superannuation guarantee rate.
What does this mean for Australian employers?
Employers have a legal responsibility to pay employees at least the minimum wage in accordance with any applicable award, or the National Minimum Wage.
Failing to pay the correct minimum wage can lead to significant financial penalties, orders for back-pay (often with interest) and costly legal action from employees or regulatory bodies like the Fair Work Ombudsman.
Staying informed about minimum wage changes protects your business from legal and financial risk while fostering a more positive and productive workplace.
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If you need support in determining whether your business is meeting minimum wage obligations, or any advice on any Australian employment law matter, we welcome you to contact Sheltons Group Legal.
Australian legal advice in the European time zone
Did you know that Sheltons Group Legal provides Australian legal services from our London office through Sheltons’ own Australian incorporated law firm?
Our lawyers are based in Sheltons’ London office to cover South Africa and all of Europe – simply to avoid the immense inconvenience of the time difference, an affliction that persists for the majority of the year.
What can Sheltons Group Legal offer?
Our qualified Australian solicitors (lawyers) are typically able to assist and provide advice on the following areas, amongst others:
– employment law
– intellectual property
– drafting and review of commercial agreements
– legal due diligence, and
– commercial and company law.
Further details
Please see here for further details:
Sheltons Group Legal – legal services from Europe
Can we help?
If you are interested in hearing how we can help, feel free to email our Australian qualified Principal Lawyer and Partner in charge of Sheltons Group Legal, Ms Courtney Gleeson at C.Gleeson@SheltonsGroup.com (London based).