Effective 1 July 2025, Australia has increased its national minimum wage by 3.5%, impacting all employers with staff covered by national minimum wage regulations. This adjustment, announced by the Fair Work Commission, reflects ongoing efforts to support Australian workers amid rising living costs. It follows last year's increase in July 2024, which raised the weekly minimum to AUD 915.90.
What Is the New National Minimum Wage in Australia?
As of 1 July 2025, the national minimum wage in Australia for employees not covered by an award or registered agreement is:
AUD 24.95 per hour (approximately USD 16.30)
AUD 948 per week (approximately USD 619.34)
AUD 24.95 per hour (approximately USD 16.30)
These figures are based on a standard 38-hour full-time work week. The update marks an increase from the 2024–25 minimum wage of:
AUD 24.10 per hour (approximately USD 15.75)
AUD 915.90 per week (approximately USD 598.40)
Employers must ensure that eligible employees receive the updated pay rate from the first full pay period starting on or after 1 July 2025.
Implications for Australian Employers
To remain compliant with Australian labour laws, employers should update payroll systems, adjust pay rates in your payroll software or provider to reflect the new minimum wage as of the applicable start date. Employers should also review employment contracts, ensuring employment contracts reflect current wage rates and entitlements.
Employers should communicate changes by notifying employees of any changes in their pay, especially if they're directly impacted by the increase. Stay informed by keeping up to date with future minimum wage reviews by monitoring announcements from the Fair Work Ombudsman and Fair Work Commission.
How Atlas HXM Can Support
Navigating wage compliance across borders can be complex. Atlas HXM helps you simplify the process by acting as your Employer of Record (EOR) in Australia and 160+ countries. We ensure that your workforce is paid accurately, legally, and on time, no matter where they're based.
With Atlas, you can:
Hire employees in Australia without setting up a legal entity
Comply with wage laws, tax regulations, and labour standards
Streamline onboarding, payroll, and benefits administration