From 1 July 2025, several changes to Australian employment law come into effect. These reforms aim to enhance worker protections, improve workplace fairness, and modernise compliance obligations for employers.
1. Minimum Wage Increase
The Fair Work Commission has announced a 3.5% increase to the National Minimum Wage, effective from the first full pay period on or after 1 July 2025. The new rates will be $948 per week or $24.95 per hour, with Modern Award rates also increasing by 3.5%
2. Superannuation Guarantee Increase
The Superannuation Guarantee rate will rise from 11.5% to 12% on 1 July 2025. This increase marks the final step in a five-year plan to boost Australian employees' retirement savings.
3. Paid Parental Leave Expansion
Paid Parental Leave will increase from 22 weeks to 24 weeks as part of a phased plan to reach 26 weeks by 2026. The government will also now pay superannuation on parental leave pay, enhancing retirement savings for parents on leave who have previously missed out.
4. Criminal Penalties for Wage Underpayment
Starting 1 January 2025, new criminal underpayment laws have been enacted. Employers found guilty of intentionally underpaying employees may face criminal charges, including fines and imprisonment.
The team at Jewell Hancock Employment Lawyers is here to help you if your employer is not compliant with any of these changes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.