Australia’s 2.8 million minimum wage and award workers getting 4.75 per cent
Australia’s 2.8 million minimum wage and award workers are receiving a 4.75 per cent pay rise from July 1. The lowest paid will get more than $1000 a week for the first time if they are full-time.
Australia’s 2.8 million minimum wage and award workers are receiving a 4.75 per cent pay rise from July 1 marking the most generous increase in three years.
The increase was above April’s inflation rate of 4.2 per cent and much better than last year’s increase of 3.5 per cent, marking the biggest increase since 2023 for those mainly working in food services, retail, healthcare and social assistance and administration and support service roles.
From July 1, the national minimum wage is rising to $1004.90 a week or $26.44 an hour under industrial classification changes.
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By continuing you agree to our Terms and Privacy Policy.The entry-level wage of $978.10 a week or $25.70 an hour will apply for new staff for no more than six months and is expected to affect 100,000 of the very lowest-paid workers.
Fair Work Commission president Adam Hatcher said the lowest paid had been suffering cuts in real wages since the end of the pandemic in 2022 as inflation soared before price pressures returned late last year ahead of the Middle East conflict.
“We consider we should at least ensure that modern award reliant employees generally are not worse off in real terms than they were as at 1 July, 2025,” he said from the bench on Tuesday morning.
“We should also take additional measures to protect the position of the very lowest paid workers under modern awards.”
But the industrial umpire rejected a union call for catch-up minimum pay increases to make up for cuts in real wages during times of high inflation.
“We have concluded regrettably that it would not be practicable or responsible in the current uncertain circumstances to award a real wage increase for employees reliant on modern award wage rates that would be sufficient to close the real wage gap entirely,” Justice Hatcher said.
The ACTU had called for a 6 per cent increase while the Australian Chamber of Commerce and Industry had called for a 3.5 per cent increase.
Employment Minister Amanda Rishworth and Treasurer Jim Chalmers had called for an “economically sustainable real wage increase” that was above inflation.
More to come
