As we begin the new financial year, the Fair Work Commission (FWC) has released its annual update for workplace and employment law. Here’s what employers need to know about the changes:
Increases to the National Minimum Wage and Award Wages
On 16 June 2025, the FWC announced the following increases to the National Minimum Wage and Award Wages:
- The National Minimum Wage will increase to $948.00 per week (or $24.95 per hour), up from $915.90 per week (or $24.10 per hour) in the previous financial year; and
- All minimum award wages will increase by 5% above the current levels.
The increased rates take effect from the first full pay period on or after 1 July 2025. This increase may also impact employers who are covered by an enterprise agreement where the minimum rates of pay reflect the underpinning Award. In this case, enterprise agreement rates will need to be increased so they’re aligned with the new applicable award minimums.
It’s paramount that all employers review their obligations under applicable modern awards to ensure that they are not underpaying employees and exposing themselves to underpayment claims or civil penalties.
Increase to the High-Income Threshold for Unfair Dismissal Claims
For all unfair dismissals occurring after 1 July 2025, the high-income threshold has increased to $183,100.00.
Further, the compensation limit has also increased to $91,550.00.
Increase to the Fair Work Commission filing fee
From 1 July 2025, the filing fee for dismissal, general protections, bullying and sexual harassment at work applications has increased to $89.70.
Increase to the Superannuation Guarantee
From 1 July 2025, the final increase of the superannuation guarantee comes into effect. The increase of the guarantee is 12%, up from 11.5% in the previous financial year. This is the final stage of the staggered increase to the superannuation guarantee and is projected to remain the same until 30 June 2028 and onwards.
Right to Disconnect
From 26 August 2025, the right to disconnect will apply to small business employers. Eligible employees will have the right to refuse contact outside of their working hours, unless that refusal is unreasonable.
Need tailored advice?
If you’re unsure how these changes affect your business, contact Coleman Greig’s Employment Law team for help.
