Australia's 2.9 million award workers will continue to feel the impacts of strong and sustainable real wage increases under Labor, from today.
Following the Albanese Labor Government's submission calling for an economically sustainable real wage increase for Australia's award workers, the Fair Work Commission announced in June that the National Minimum Wage and award wages would increase by 3.5 per cent from July 1.
The National Minimum Wage has now increased by:
- $0.85 to $24.95 per hour
- $32.10 to $948.00 per 38-hour week
- $1669.20 to $49,296.00 per year.
The latest inflation figures show that over the year to the March quarter 2025, inflation rose by just 2.4 per cent. The FWC's decision means National Minimum Wage and award workers will receive a real wage increase above inflation of 1.1 per cent.
Since our Albanese Labor Government was elected in May 2022, the National Minimum Wage has increased by $4.62 per hour or more than $9120.00 per year.
Minister for Employment and Workplace Relations Amanda Rishworth said the increase to the National Minimum Wage will benefit one in four Australian employees (23 per cent), who are workers on award wages. Many of these workers are low paid, are more likely to be women, employed on a casual basis, working part-time hours and/or are young.
"Our Albanese Labor Government is committed to achieving real wage increases for Australian workers, and our submission to the Fair Work Commission is evidence of this," Minister Rishworth said.
"Today's real wage increase provides further relief to Australia's lowest paid workers, who continue to face cost-of-living pressures in an environment where inflation has returned to the Reserve Bank's target band, unemployment remains low and interest rates are coming down."
Other 1 July employment services reform measures coming into effect today, include:
- WorkFoundations - investing $10 million over two years to assist people with complex barriers to employment to build their work readiness, and access to paid employment placements of up to 6 months with tailored services.
- Local Jobs Program - providing $62.6 million to extend the program to 30 June 2027 to connect local employers, jobs seekers and communities in 51 employment regions.
- Norfolk Island Employment Support Program - additional funding of $0.2 million over three years from 2025-26 (and $0.1 million per year ongoing) for a new streamlined employment program that will be introduced on Norfolk Island.
- Real Jobs, Real Wages pilot - a $32.1 million government investment to support people at risk of long-term unemployment into secure work.
