Industrial Relations Update | June 2025
Industrial relations changes in the next couple of months.
The Fair Work Commission is currently examining submissions from employers, Federal Government, and unions. It is the annual review of the Minimum Wage Adjustments for Awards and in some cases, enterprise agreements.
The National Minimum Wage Adjustment is expected to take effect from 1st July 2025 and is anticipated to reach an increase somewhere in between submissions between unions, employers, and the Federal Government.
The unions are seeking an increase of 4.5% in the Minimum Wage Adjustment which means that the lowest paid employee will be entitled to $25.18 per hour or $956.84 per week (full time rate). Please note that the rates that usually appear in the media are full-time rates. Casuals received 25% more.
Employer groups including the AI Group has proposed a 2.6% wage increase.
The Prime Minister stated that the Government is backing the country’s lowest paid workers to get ahead with a wage rise above inflation. The Government recommends “an economically sustainable real-wage increase” for Australia’s minimal wage workers. This changes the Government’s previous position which sought to push the real wages so that workers do not go backwards. It is now advocating an increase of above inflation.
The Inflation Rate in Australia remains at 2.40 percent in the first quarter of 2025 from 2.40 percent in the fourth quarter of 2024.
History shows that the Fair Work Commission will announce its decision around mid-June to take effect on the first full pay period commencing on or after 1st July 2025. The next Member Update will advise the new rates.
Superannuation Guarantee Act
The Superannuation Guarantee Act will increase from 11.5% to 12% from the first full pay period commencing on or after 1st July 2025.
Record Keeping Blitz for businesses nationwide
The Fair Work Ombudsman has been checking employer records and handing out fines with surprise inspections of about 50 businesses across six cities. The Fair Work Inspectors have reportedly knocked on doors of retailers and targeting their businesses.
If you are unsure about what record keeping responsibilities you have, please go to https://www.fairwork.gov.au/pay-and-wages/paying-wages/record-keeping
Members’ Industrial Relations Advice
Livestock SA members are entitled to contact MERS for a free half hour consultation, per member per year. Our telephone number is 08 8331 2422 and email chas@mers.com.au