EOFY 2025: what employers need to know about wage and super changes

As 1 July 2025 approaches, employers must prepare for key changes to Australia’s increasing minimum wage and superannuation rates. These updates will affect payroll, employment contracts and compliance obligations, particularly for businesses with award-covered or lower-paid staff.

Minimum wage increase

The Fair Work Commission has confirmed a 3.5% increase to both the National Minimum Wage and minimum award wages. This is a notable rise, exceeding the current inflation rate, and represents the largest real wage growth seen in recent years.

What’s changing?

• Previous rate: $24.10 per hour
• New rate: $24.95 per hour
• Weekly full-time equivalent: $948.05

This new rate applies from the first full pay period on or after 1 July 2025. For example, if your pay cycle starts on a Monday, the new rate will apply from Monday 7 July.

Who is affected?

You will need to review wages for employees on or near minimum award rates, including:

• Casual and part-time staff
• Apprentices and trainees
• Employees under enterprise agreements referencing award rates

Even if your staff are paid above award rates, now is the time to ensure you’re still compliant with the new minimum thresholds.

Why it matters?

Underpaying employees—even unintentionally—can lead to backpay claims, penalties and reputational harm. The Fair Work Ombudsman is increasing its compliance activity, particularly in sectors such as hospitality, retail and trades.

Superannuation rising to 12 %

From 1 July 2025, the Superannuation Guarantee (SG) rate will increase from 11.5% to 12%, completing the government’s scheduled reforms.

What does this mean for employers?

You must:

• Update your payroll system to reflect the 12% SG rate
• Review employment contracts to confirm whether super is included or paid on top of salaries
• Ensure employees are not underpaid as a result of absorbing the super increase into total remuneration

Example scenario

If an employee’s total remuneration is $60,000 (inclusive of super), their base salary is currently $53,807 at the 11.5% SG rate. When the SG increases to 12%, the base salary drops to $53,571—unless the total package is increased. If this results in pay falling below award rates, you could be in breach of the Fair Work Act.

What to do now?

To stay compliant and avoid financial risk:

• Review pay rates: cross-check all employee wages with the new minimum rates, especially for casuals, juniors and award-reliant staff
• Update payroll systems: ensure your accounting software is configured for both the new wage and SG rates
• Audit employment contracts: clarify how super is structured. If super is absorbed into the total package, confirm the base wage still meets legal obligations
• Communicate with your team: let your staff know what’s changing. Transparency helps build trust and minimises confusion
• Book an HR PulseCheck: if you’re unsure of your compliance status, this is the ideal time for a professional HR review to mitigate risk

Real-world examples

• Café owner – Brisbane: Casual weekend rates may need adjusting under the updated Hospitality Award. A quick review now will help you stay ahead of rising payroll costs.
• Tradie – Melbourne: Recalculate base pay for staff on inclusive super packages to ensure award compliance, especially with overtime and penalty rates.