Australian Minimum Wage & Superannuation Changes from 1 July 2025

As part of our commitment to keeping hiring managers informed and compliant, we’re sharing the latest updates from the Fair Work Commission that will take effect in Australia from 1 July 2025. These changes will impact pay rates and superannuation obligations across many workforce segments.

National Minimum Wage increase

The Fair Work Commission has announced a 3.75% increase in the National Minimum Wage effective from 1 July 2025. This adjustment raises the minimum hourly rate from $24.10 to $25.00, and the weekly minimum for full-time workers to $950.00 based on a 38-hour week.

Which employees are affected
All employees not covered by an award or enterprise agreement are affected. Most Modern Awards will also see a similar percentage increase in minimum award wage classifications. Final award rates will be published by the Fair Work Commission. Hiring managers should confirm the applicable rate for each classification before 1 July to ensure accurate application. 

Superannuation Guarantee increase

The Superannuation Guarantee (SG) rate will rise from 11.5% to 12% on 1 July 2025, completing the legislated incremental increases aimed at enhancing retirement savings for Australians. Employers must apply the new 12% SG rate for all eligible workers. In total remuneration arrangements, the increase must be directed to the super component and not absorbed into the base salary, unless the contract expressly allows this and is compliant with relevant employment legislation and award provisions.

What this means
Employers must increase SG contributions to 12% for all eligible workers. Contractors or PAYG temps engaged via labour hire or contractor management providers should ensure suppliers have accounted for this change in their remuneration models. For independent contractors (eg. ABN holders), SG obligations may still apply if the individual is deemed an employee for superannuation purposes under the ATO’s extended definition.

 
Key actions for hiring managers:

• Review current award or minimum rate aligned engagements to ensure compliance from 1 July.
• Ensure suppliers adjust pay rates for contingent labour hire arrangements to maintain compliance with award and minimum wage requirements.
• Confirm contingent workforce recruitment suppliers are aware of this change and have updated their payroll settings for all workers accordingly.
• Ensure the increase is applied to the super component and not absorbed into the base rate unless contractually agreed and compliant.

How Comensura can help:

These changes apply to all employees including labour hire and contingent workers. As your Managed Services Provider or Contractor Management Solution provider, Comensura will ensure compliance across all engagements, which we manage through regular audits and robust control processes.

• We proactively audit supplier pay rate and superannuation compliance proactively on behalf of our customers across all engagements.
• Our platform provides real-time visibility into contingent worker costs, helping you manage budget impacts.
• We work closely with suppliers to ensure payroll and superannuation settings are updated in line with legislative changes.
• Through our proprietary Vendor Management System (VMS), c.net, we uncover off-contract or unmonitored spend and bring it into view for compliance purposes - a crucial step toward achieving full compliance and spend transparency.

Find out if these changes affect your workforce, reach out to your Program Manager or contact us for a compliance check. 

If you’re not yet working with Comensura, get in touch with our team to find out how we can support your organisation.

For more information: 
Fair Work Ombudsman
ATO-Super Guarantee Increase