The Fair Work Commission's (FWC) Annual Wage Review was announced today.
The FWC has announced a 3.5% rise in all modern award rates and the National Minimum Wage which will come into effect from 1 July 2025.
In effect, this decision will result in:
A vast array of stakeholders including employers, union organisations and government bodies made submissions in the Review. The Commission reported that the primary factor guiding the decision to increase the minimum wage by 3.5% was the fact that "since July 2021, the real value of modern award wages (at the benchmark C10 rate) has declined by 4.5 percentage points relative to inflation as measured by the Consumer Price Index (CPI)".1
The Commission acknowledged that the last three Annual Review Decisions had not taken action to reverse the decline in wages to avoid the potential that a persistence of higher inflation may eventuate. However, the Commission has regarded its decision today as a level of wage increase that is sustainable.
Footnote
1 Annual Wage Review Decision [2025] FWCFB 3500.
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