Fair Work Updates: Australian Minimum Wage & Superannuation Changes from 1 July 2025

To help our clients stay ahead of compliance requirements, we’re highlighting key changes to minimum wage and superannuation that will impact hiring and workforce planning in Australia from 1 July 2025. These updates are essential for maintaining fair and lawful employment practices.

National Minimum Wage increase

Effective 1 July 2025; the Fair Work Commission has mandated a 3.75% increase in the National Minimum Wage. This change elevates the minimum hourly rate from $24.10 to $25.00, and the weekly minimum for full-time workers to $950.00 based on a 38-hour week.

Affected parties

Employees not covered by an award or enterprise agreement. Most Modern Awards will also experience a similar percentage increase in minimum award wage classifications. Final award rates will be published by the Fair Work Commission in June 2025. Hiring managers shoul confirm that applicate rate for each classification before 1 July to ensure accurate application.

Superannuation Guarantee increase

The Superannuation Guarantee (SG) rate will rise from 11.5% to 12% on 1 July 2025, completing the legislated incremental increases aimed at enhancing retirement savings for Australian workers. Employers must apply the new 12% SG rate for all eligible workers. In total remuneration arrangements, the increase must be directed to the super component and not absorbed into the base salary, unless the contract expressly allows this and is compliant with relevant employment legislation and award provisions.

Implications:

Employers must raise SG contributions to 12% for all eligible workers. Contractors or PAYG temps engaged via labour hire or contractor management providers should ensure suppliers have incorporated this change in their remuneration models.

Action points for hiring managers:

Review current engagements aligned with awards or minimum rates to ensure compliance from 1 July.
Ensure suppliers adjust pay rates for contingent labour hire arrangements to maintain compliance with award and minimum wage requirements.
Confirm contingent workforce providers are aware of this change and have updated their payroll settings accordingly.
Ensure the increase is applied to the super component and not absorbed into the base rate unless contractually agreed and compliant.

How Guidant Global can support you:

Guidant Global supports strategic workforce planning by modelling the cost impact of workforce decisions across entire portfolios, enabling smarter, more informed planning and budgeting. As part of this strategic approach, we ensure compliance with evolving employment regulations. These Fair Work changes above extend to all employees, including labour hire and contingent workers. When partnering with Guidant Global as your Managed Services Provider or Contractor Management Solution provider, we manage compliance across all engagements through rigorous audits and control mechanisms.

We partner with suppliers to ensure timely updates to pay and super settings.
Our compliance monitoring tools help you stay audit-ready and aligned with Fair Work requirements.
We provide strategic workforce planning insights to help you manage cost impacts and maintain workforce continuity.
Our services include identifying and capturing untracked or off-contract spend and bring it under program governance to strengthen compliance and enhance visibility across your workforce.
Our Supplier Partner Services Team reviews supplier alignment with legislative changes and collaborates closely with clients to identify and address any compliance gaps.

Unsure if these changes affect your workforce? Contact your Program Manager or the Guidant Global team for a compliance check - we're here to help you stay on track.

Not currently partnered with Guidant Global? Get in touch with our team to explore how we can support your organisation with workforce compliance and strategic planning. We're ready to help.

For more information:

Fair Work Ombudsman
ATO-Super Guarantee Increase