AUSTRALIA | Hospitality staff across Australia will receive a pay increase due to the National Minimum Wage increase being implemented from July 1st.
The Fair Work Ombudsman said employers must ensure eligible employees get their 3.5 percent minimum wage increase from the first full pay period starting on or after 1 July 2025.
The new National Minimum Wage is AUD 948 per week (based on a 38-hour week for a full-time employee), or AUD 24.95 per hour. This is an increase from the 2024-25 rates of AUD 915.90 per week and AUD 24.10 per hour.
Casual employees entitled to the National Minimum Wage must receive at least AUD 31.19 per hour, which includes the 25 percent casual loading.
The 3.5 percent increase also applies to the minimum wage rates within awards. About 20.7 percent of all employees in Australia are paid at the minimum wage rates in industry and occupational awards.
The FWO has updated its Pay Calculator to help employers and employees calculate the new pay rates.
The National Minimum Wage is the minimum rate for adult employees in the national system who are not covered by an award or enterprise agreement. It is set each year by the Fair Work Commission (a different agency to the Fair Work Ombudsman), as part of its annual wage review.
Fair Work Ombudsman Anna Booth urged employers to make sure that eligible employees receive the 3.5 percent increase from the first full pay period on or after 1 July.
“The Fair Work Ombudsman provides information, tools and support to employers to help them pay employees correctly,” Booth said.
“Employers and employees can use our free Pay Calculator and pay guides to check the minimum pay rates that apply from today, or they can contact us directly for assistance.”
Booth added that employers must apply the new minimum wage immediately from the first full pay period on or after 1 July to eligible employees.
“Employers and employees can also use our Pay Calculator to check which award applies to their industry or occupations, or contact us for help.”
The minimum wage increase may also apply to employees covered by an enterprise agreement, as an employee’s base pay rate under an enterprise agreement can’t be less than their base pay rate under the relevant award or the National Minimum Wage if the employee is not covered by an award.
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