Sydney, June 3, 2025 – In a major decision affecting millions of Australian workers, the Fair Work Commission (FWC) has announced a 3.5 per cent increase to the national minimum wage, surpassing the current rate of inflation and offering a crucial financial uplift to the country’s lowest-paid employees.
The decision, handed down during the annual wage review on Tuesday, will see the hourly minimum wage rise from $24.10 to $24.94, effective from July 1. For a full-time worker, this translates to a boost in annual income from $49,770 to $51,511.95—an increase of approximately $32 per week, lifting weekly earnings to $947.96.
This wage hike will directly benefit more than 2.6 million Australians who are reliant on minimum and award wages. The increase also reflects a shift in the Commission’s stance amid easing inflation, which currently sits at 2.4 per cent.
FWC President Adam Hatcher acknowledged that the decision aims to address the erosion of real wages experienced by low-paid workers since July 2021. "Living standards for employees dependent on Modern Award wages have been squeezed, and the low paid have experienced greater difficulty in meeting their everyday needs," Mr Hatcher stated.
He also noted that while the Commission had previously avoided awarding inflation-level pay rises over concerns of fuelling inflation, that caution is no longer necessary. “The inflationary episode is now over,” he declared, signalling a renewed willingness to support wage growth.
The Albanese government had advocated for an increase aligned with inflation to support cost-of-living pressures. However, the final figure fell short of the 4.5 per cent rise pushed by the Australian Council of Trade Unions (ACTU), which continues to argue that a stronger increase is necessary to genuinely improve workers’ real incomes.
With this increase, Australia’s minimum wage remains among the highest in the world, offering much-needed relief to households facing rising living expenses across food, rent, and utilities.
The wage rise is expected to have flow-on effects across the economy, influencing not just individual finances but also business wage bills and overall consumer spending patterns in the months ahead.
