Whether you’re an employer under the national or State industrial awards system, it’s essential to understand how the updated wage rates apply to your workforce.
Getting this right will help you ensure compliance and avoid penalties, including under Australia’s new wage theft laws applicable to national system employers.
CCIWA’s Employee Relations Helpline team explains what you need to know about the award changes.
CCIWA Members have unlimited access to our Employee Relations Helpline – with expert advice on industrial relations and human resources just a phone call away on 08 9365 7660.
What is the National Minimum Wage applicable from July 1, 2025?
As of July 1, 2025, the national minimum wage has increased following the annual wage review decision. For national system employers, wage rates have risen by 3.5% in line with the Fair Work Commission’s decision. The new minimum wage is $24.95 per hour or $948.00 per week. The new national minimum wage was applicable from the first full pay period on or after July 1, 2025.
Who does the new minimum wage apply to?
The updated national minimum wage applies to national system employers and national system employees, who are employees not covered by an award or an enterprise agreement.
What does this mean for employees covered by a modern award or enterprise agreement?
Employees covered by an award or an enterprise agreement are entitled to the minimum pay rates set out in their award or agreement.
Employees covered by a modern award will also receive wage increases in line with the annual wage review decision.
For employees covered by an enterprise agreement, the minimum wage increase may also apply. A base rate of pay in an enterprise agreement should not be lower than the base pay rate of pay in the relevant modern award.
How will this change affect employers?
From July 1, 2025, employers must review their pay rates to ensure compliance with the annual wage increase. Employees cannot be paid less than their applicable minimum amount. Failure to comply may result in underpayment claims and potential penalties.
Employers should also be aware of the recent criminalisation of wage theft legislation which commenced on January 1, 2025. Wage theft refers to an underpayment of employee entitlements and includes non-payments of wages. When absolute liability and intention elements are satisfied, these matters can be referred to and dealt with criminally, carrying hefty penalties and up to 10 years' imprisonment.
What if employees are paid above award rates?
If an employee is receiving a pay rate above the award minimum rate, including the new minimum rate as per the July 1, 2025, increases, then they may not be eligible to receive a further rate increase.
For employers offsetting or paying a flat rate, employers should ensure that they are completing a better off overall calculation based on the increased rates under the award and have a sufficient offsetting clause in their contract of employment.
What are the increased rates for State system employees?
For State system employees in WA, the wage will increase by 3.75%, following the WA Industrial Relations Commission’s State Wage Case decision. The new minimum wage will be $25.08 per hour or $953.00 per week.
How we can help
If you need assistance determining whether your employees are covered by an award or agreement, or how to apply the new rates, you can contact our Employee Relations Helpline on 08 9365 7660 or via [email protected]. CCIWA can also performs Wage Spot Checks to assist employers with minimising underpayment risks.
Additionally, CCIWA offers an Industrial Award Subscription Service, which covers many Modern Awards and WA State Awards. This service includes:
- A comprehensive, easy-to-use Wage Schedule
- Important email updates following any Award amendments, including a Schedule of Amendments
