Hourly minimum compensation

Australia's National Minimum Wage sets the lowest hourly rate that employers must pay eligible employees. As of 1 July 2025, the National Minimum Wage is $24.95 per hour, equivalent to $948 per week for a standard 38-hour week. This rate applies to most employees covered by the National Employment Standards under the Fair Work Act 2009, unless a modern award or enterprise agreement specifies a higher minimum rate for their industry or role.

The National Minimum Wage is set and adjusted annually by the Fair Work Commission, an independent statutory body established under the Fair Work Act 2009. The Commission reviews the minimum wage each year, typically taking effect on 1 July, and considers economic data, inflation, and living costs when determining the new rate.

The most recent adjustment occurred on 1 July 2025, when the National Minimum Wage increased from the previous rate to $24.95 per hour. This annual indexation ensures the minimum wage keeps pace with cost-of-living pressures.

Employers must ensure all eligible employees receive at least the National Minimum Wage for all hours worked, unless covered by a modern award or agreement that provides a higher rate. Payroll teams should verify whether employees are covered by industry-specific modern awards, as these often prescribe minimum rates above the National Minimum Wage. Compliance is monitored by the Fair Work Ombudsman, and breaches can result in penalties and back-pay claims. Employers should review their pay scales annually following the 1 July adjustment to maintain compliance.