The Fair Work Commission’s (Commission) Expert Panel for annual wage reviews (Panel) handed down its much-anticipated Annual Wage Review decision this morning. The Panel approved a 3.5% increase to minimum modern award rates and the National Minimum Wage. These changes will take effect from 1 July 2025.
The Panel confirmed that the principal consideration guiding their decision was the decline in the real value of wages for employees reliant on modern award minimum wages or the National Minimum Wage, particularly in light of inflation.
The Panel stated:
“…living standards for employees dependent on modern award wages have been squeezed, and the low paid have experienced greater difficulty in meeting their everyday needs.”
Other considerations noted in the decision included:
- the upcoming increase in the Superannuation Guarantee contribution rate;
- uncertainty caused by changing U.S. trade policies; and
- signs of weakness in the accommodation and food services sector, where a significant proportion of modern award-reliant workers are employed.
To access the Commission’s full decision, please click https://www.fwc.gov.au/documents/resources/2025fwcfb3500.pdf or to discuss the decision in more detail, please feel free to contact a member of the HMB Law team on (03) 9448 9600.
The above is general information and should not be taken as legal advice.
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