Important Workforce Updates Effective July 1, 2025
Important Workforce Updates Effective July 1, 2025
Minimum Wage and Superannuation Changes
By Justin Newman, Senior Partner – HR Consulting, Options Consulting Group
As we approach the new financial year, it’s crucial for Australian businesses to prepare for key legislative changes that will impact payroll, workforce planning, and compliance. Two significant updates taking effect from 1 July 2025 are the increase in the national minimum wage and the rise in the Superannuation Guarantee (SG) rate.
Understanding these changes and how they affect your business is essential to stay compliant and maintain positive employee relations. Here’s what you need to know and how Options Consulting Group can support your business through this transition.
1. Minimum Wage Increase: What You Need to Know
The Fair Work Commission has announced a 3.5% increase to the minimum wage for Award-covered employees. This raises the base rate to $24.95 per hour or $948 per week (based on a 38-hour week), effective from 1 July 2025.
How Does This Impact Your Business?
For Award-Covered Employees:
If your employees are covered by a Modern Award, their minimum pay rates will increase by 3.5% on 1 July 2025. The Fair Work Commission will update all relevant Awards to reflect these new rates. Employers currently paying above the minimum Award rates can choose whether to adjust wages further.
For Non-Award Covered Employees:
Employees not covered by a Modern Award generally have wage increases at your discretion, provided their pay remains above the new minimum rate of $24.95 per hour, unless other agreements such as Enterprise Agreements apply.
2. Superannuation Guarantee Rate Increase
Alongside wage updates, the Superannuation Guarantee rate is set to increase from 11.5% to 12% from 1 July 2025. This legislated change affects all eligible employees across Australia.
What Does This Mean for Employers?
-
The minimum superannuation contribution will rise to 12% of an employee’s ordinary time earnings.
-
Employers must update payroll systems to reflect this change and ensure contributions comply with ATO requirements.
-
This is an ideal time to review employment contracts and payroll settings to ensure full compliance before the new financial year begins.
How Options Consulting Group Can Support Your Business
Navigating these legislative changes can be complex. Our experienced HR Consultants at Options Consulting Group are ready to help you manage compliance, update payroll practices, and review employment contracts tailored to your business needs.
Whether you need assistance updating wage policies or ensuring your superannuation contributions meet current standards, we provide practical solutions to keep your business running smoothly.
Beyond compliance, our team partners with businesses to build strong people strategies that reduce risk and streamline operations. From workforce planning to leadership development and employee engagement, we help you create a sustainable competitive advantage.
Explore our HR consulting services and take the next step toward workforce excellence.