Upcoming Minimum Wage and Superannuation Guarantee increases

"Two important updates coming into effect on 1 July 2025; an increase to minimum wages and an increase to the Superannuation guarantee. These changes are a timely reminder to review your pay practices and update systems to ensure your business is compliant"

From 1 July 2025, two important workplace changes will come into effect: a national minimum wage increase and the final legislated rise in the Superannuation Guarantee rate. These updates are part of ongoing efforts to ensure fair pay and long-term financial security for Australian workers. As an employer, it’s important to understand what’s changing and take action now to stay compliant.

Minimum Wage Increase 2025

The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage and minimum award wages, effective from the first full pay period starting on or after 1 July 2025.

What do employers need to do?

• Review employee wage arrangements and implement any necessary increases in line with the new minimum Award rates.

• Employers already paying above-Award wages should ensure those rates remain compliant. You may choose to absorb the increase if wages remain sufficiently above Award, or you may decide to pass on the full increase across all rates.

• The Fair Work Commission is in the process of updating all relevant pay guides and tools, which will be available via the Fair Work website. These updated guides are expected to be released before 1 July to help employers apply the new rates correctly.

More information is available on the Fair Work website.

Superannuation Guarantee Increase

From 1 July 2025, the Superannuation Guarantee (SG) rate will increase from 11.5% to 12%, completing the legislated rise first introduced in 2021.

What do employers need to do?

• Use the new 12% rate to calculate super on any payments made to employees on or after 1 July, regardless of when the work was performed.

• Update your payroll and accounting systems to reflect the new SG rate to ensure ongoing compliance.

Coming Soon: Superannuation on Parental Leave Pay

Also from 1 July 2025, the government will begin paying superannuation on government-funded Parental Leave Pay. Contributions will be made annually via the ATO from July 2026, boosting long-term retirement savings for eligible parents.

Need further support?

If your business needs support implementing these changes or you have questions, please reach out to discuss or Book a 15 minute meeting with me here.