The Fair Work Commission has just made its call on the Annual Wage Review, and it means pay rates are going up from 1 July 2025.
If you employ staff, this affects you. Doesn’t matter if you are running a café, trade business, or a team of office professionals, you will need to update your payroll and check your award coverage. These changes are not optional, and non-compliance could cost your business in more ways than one.
What is Changing?
- Award minimum wages are going up by 3.5%
- The National Minimum Wage is increasing to $948 per week or $24.95 per hour
- Junior, apprentice and trainee rates will also go up
- Allowances (like first aid, uniform, meal or travel) are increasing too
- These changes kick in from the first full pay period on or after 1 July 2025
- There’s also a new review into pay equity for degree-qualified professionals (think health, education, community work, etc.)
What You Need to Do Now
If you are an employer, whether you operate a busy trade business, a corporate office, or something in between, this isn’t just background noise. It’ is time to act.
Not sure if you are on the right award? Or if your contracts cover you properly? That is where we come in. At Integrated People Solutions, we can help you:
- Review your current pay structure to ensure full compliance with the new minimums
- Audit your employment contracts to ensure they reflect the updated terms
- Adjust your payroll systems in time for the 1 July 2025 changeover
- Update your written policies and letters of offer, because if it’s not in writing, it didn’t happen
- Stay ahead of gender equity requirements, especially if you employ professionals like engineers, health workers, social workers, or educators
For Trades, Hospitality and Blue-Collar Businesses
This is especially important if you have casuals, apprentices, or shift workers. That 3.5% increase might not sound like much, but across your roster, but it adds up fast. We aim to help you get ahead of it, rather than scrambling in July. These changes mean:
- Every hourly rate needs a review
- Overtime and penalty rates will change
- Allowances may increase
For Office Teams and Professional Services
If you manage a professional or office-based team, you might think you are not affected. But think again. Many office workers are still covered by awards (e.g. Clerks, Social and Community Services, Health Professionals, etc.). Even salaried roles must meet the Better Off Overall Test (BOOT) when compared to the relevant award.
On another note, the FWC’s renewed focus on gender-based pay-gaps too.
If your staff have degrees, you will want to keep an eye on the upcoming review of those roles too.
Get It In Writing
Whatever you change, put it in writing. As I like to say, if it is not written down, it didn’t happen. Update those letters of offer and contracts so you have got a clear paper trail. It’s not just best practice, it protects you.
Need a Hand?
If all this sounds like a lot, it is! Let us take it off your plate so you can focus on running your business. Whether it is one staff member or a whole team, we will make sure you are compliant, clear, and covered.
Bonus Tip: Share This Blog With Your Accountant or Bookkeeper!
They will thank you later when your payroll runs smoothly, and your risk of underpayment claims disappears.
Need Help? Let’s Talk
Let’s make sure your business is ready by July. Get in touch today or visit integratedpeoplesolutions.com.au or call (03) 7076 1567.
