3 June 2025

National Minimum Wage to rise 3.5 per cent following Annual Wage Review

Note

Joint media release with
The Hon Amanda Rishworth MP
Minister for Employment and Workplace Relations 
Member for Kingston

The Fair Work Commission’s Expert Panel today announced the National Minimum Wage and award wages will increase by 3.5 per cent from 1 July 2025, following the 2024–25 Annual Wage Review.

  • The National Minimum Wage will increase by:
    • $0.85 to $24.95 per hour
    • $32.10 to $948.00 per 38‑hour week
    • $1,669.20 to $49,296.00 per year.

This follows the Albanese Labor Government’s submission to the Expert Panel recommending it award an economically sustainable real wage increase to Australia’s award workers.

In three years since Labor came to government, the National Minimum Wage has increased by $4.62 per hour, more than $175.00 per week and $9,120.00 per year, or a 22.7 per cent increase.

Based on the latest annual inflation figures, measured at 2.4 per cent through the year to the March quarter 2025, this is a real wage increase of 1.1 per cent for all National Minimum Wage and award workers.

Last year, the Fair Work Commission awarded an above inflation 3.75 per cent increase to the National Minimum Wage and award wages.

Minister for Employment and Workplace Relations Amanda Rishworth said the decision was a win for workers.

“I welcome the Fair Work Commission’s decision to increase the National Minimum Wage and award wages,” Minister Rishworth said.

“Our Government believes that workers should get ahead with an economically sustainable real wage increase.

“A real wage increase provides further relief to our lowest paid workers who continue to face cost‑of‑living pressures. The panel’s decision will benefit up to 2.9 million Australian workers who have their pay set by an award.”

Treasurer Jim Chalmers said the decision is good for workers, good for the economy and will help with the cost of living.

“This decision is very welcome news for millions of workers across the country and is recognition of the progress Australians have made together in the economy,” Treasurer Chalmers said.

“Under Labor, real wages are up, inflation is down, unemployment is low, incomes are growing and we’ve had two interest rate cuts in three months.

“We know people are still under pressure and that’s why this decision and our ongoing cost‑of‑living relief are so important.

“Boosting wages, cutting taxes for every taxpayer and creating more jobs are central parts of our efforts to help Australians with the cost of living.”

Our economic strategy has been about getting wages moving again and getting on top of inflation, while maintaining the gains in the labour market and building a more productive economy over time.

Under Labor, more Australians are working, earning more and keeping more of what they earn.

Annual real wages have grown for 18 months in a row under the Albanese Government, after going badly backwards under the previous Liberal government and falling for the five quarters in the lead up to the 2022 election.

On the official quarterly numbers, the March quarter was the first time since records began that unemployment has been in the low 4s and headline and underlying inflation have both been in the target band.

Increases to minimum and award wages add to our suite of cost‑of‑living measures and policies to support workers, including our Secure Jobs, Better Pay reforms and our tax cuts for every taxpayer.

All this progress we have made together means we are well placed and well prepared at a time of global economic uncertainty and volatility.