Overview

• The Fair Work Commission increased the national minimum wage by 3.5% to $24.94 per hour and $947.95 per week from July 1, 2025.
• Approximately 2.9 million workers, about one-fifth of the Australian workforce, will benefit from the wage rise.
• The decision responds to inflation running at 2.4% and Reserve Bank forecasts that it will rise to 3.1% by mid-2026 to ensure a real pay increase.
• The Australian Council of Trade Unions had sought a 4.5% hike and criticised the 3.5% figure as inadequate, and employer groups cautioned that the rise could exacerbate cost pressures on small businesses.
• Economists say the adjustment will likely have a minimal effect on the wage price index but will help correct real wage declines entrenched over the past four years.