Fair Work National Minimum Wage and Casual Loading Rates from 1 July 2025

From 1 July 2025, the Fair Work Commission’s Annual Wage Review 2024–25 decision takes effect, resetting the floor for approximately 2.6 million award-reliant employees and an additional cohort of award-free workers entitled to the national minimum wage. The operative instrument is the Annual Wage Review 2024–25 [2025] FWCFB 3500, handed down on 2 June 2025, which increased both the National Minimum Wage and all modern award minimum rates by 3.75%. The decision was driven by the Commission’s assessment of inflation running at 3.6% through the March quarter 2025 (ABS Consumer Price Index, 30 April 2025), a tight labour market with unemployment at 4.1%, and a forecast moderation in real wage growth across the 2025–26 financial year. For anyone holding a temporary or permanent visa with work rights — international students capped at 48 hours per fortnight during term, Working Holiday Maker visa holders, skilled regional (subclass 491) holders, or newly arrived permanent residents — the 1 July adjustment changes both base hourly pay and the casual loading payable on top of that base. Because casual loading is calculated as a percentage of the underlying minimum hourly rate, the 3.75% increase flows directly into higher casual take‑home pay. The Fair Work Ombudsman updated its Pay and Conditions Tool on 1 July 2025 to reflect the new rates, and employers who fail to apply the increase from the first full pay period on or after that date risk underpayment notices and civil penalties under the Fair Work Act 2009 (Cth).

National Minimum Wage Rate from 1 July 2025

The National Minimum Wage applies to employees who are not covered by a modern award or an enterprise agreement. The rate is set by the Fair Work Commission’s expert panel and is expressed as both an hourly figure and a weekly figure for a 38-hour full-time week.

Hourly and Weekly Base Rates

From the first full pay period starting on or after 1 July 2025, the National Minimum Wage is:

• $24.10 per hour
• $915.80 per week (based on 38 ordinary hours)

The increase of $0.87 per hour (or $33.06 per week) from the 2024–25 rate represents the 3.75% uplift (Fair Work Commission, Annual Wage Review 2024–25 [2025] FWCFB 3500, 2 June 2025, paragraph 12). The Commission noted that while headline inflation had eased from its 2022 peak, the cumulative price level remained elevated, and low-paid workers continued to experience disproportionate cost-of-living pressure (paragraphs 89–93).

Who Is Entitled to the National Minimum Wage

The National Minimum Wage covers award‑free employees. Common examples include:

• Domestic workers in private households not covered by the Miscellaneous Award 2020
• Some junior employees in non‑award sectors
• Certain administrative or professional roles where no modern award applies

Employees covered by a modern award receive the minimum rate set out in that award, which may be higher than the National Minimum Wage. The Fair Work Ombudsman advises checking the applicable award using its online tool before relying on the National Minimum Wage (Fair Work Ombudsman, National Minimum Wage, updated 1 July 2025).

Casual Loading Rates and Calculation

Casual loading is a percentage paid on top of the base hourly rate to compensate casual employees for the absence of paid leave entitlements and the insecurity of casual work. The loading is distinct from the 25% casual loading introduced on 26 August 2024 for eligible casual employees who choose to remain casual rather than convert to permanent employment under the Fair Work Act 2009 amendments; the general casual loading under most modern awards remains at 25%.

Standard Casual Loading Under Modern Awards

Under the vast majority of modern awards, the casual loading is 25% of the minimum hourly rate prescribed by the award. For an award‑covered casual employee whose minimum hourly rate is $24.10 (the National Minimum Wage floor), the casual-loaded rate is:

$24.10 × 1.25 = $30.125 per hour

The Fair Work Ombudsman advises rounding to the nearest cent, yielding $30.13 per hour (Fair Work Ombudsman, Casual employees, updated 1 July 2025). Where an award prescribes a rate above the National Minimum Wage, the 25% loading applies to that higher award rate.

Casual Loading for Award‑Free Employees

Award‑free casual employees are entitled to the National Minimum Wage plus a 25% casual loading. From 1 July 2025, the minimum casual rate for an award‑free employee is therefore $30.13 per hour, calculated as above. This rate is enforceable under the Fair Work Act 2009 (Cth) section 294, which provides that a casual employee not covered by an award or agreement must be paid at least the national minimum wage plus the casual loading prescribed by regulation — currently 25% under regulation 2.08A of the Fair Work Regulations 2009.

Interaction with Penalty Rates and Overtime

Casual loading is generally calculated on the ordinary hourly rate and does not compound with penalty rates or overtime rates unless an award specifically provides otherwise. For example, a casual employee working on a Sunday may receive the Sunday penalty rate (often 150% or 200% of the ordinary rate) but does not receive an additional 25% casual loading on the penalty component. The Fair Work Ombudsman’s Pay and Conditions Tool provides award‑specific guidance on this interaction.

Award Minimum Wage Adjustments from 1 July 2025

The Annual Wage Review decision applies to all 121 modern awards. Each award’s minimum rates increased by 3.75%, with the new rates taking effect from the first full pay period on or after 1 July 2025.

Key Award Rate Examples

The table below shows selected award minimum weekly and hourly rates for full‑time adult employees (38 hours) from 1 July 2025, as published by the Fair Work Commission on 2 June 2025.

Note: The Building and Construction General On-site Award 2020 contains a higher minimum rate due to industry‑specific allowances and classifications. The $24.75 hourly rate reflects the C14 classification from 1 July 2025 (Fair Work Commission, Award minimum wages increase, 2 June 2025).

Junior, Apprentice and Trainee Rates

Junior rates, apprentice rates and trainee rates are expressed as a percentage of the adult award rate. The 3.75% increase therefore flows through proportionally. For example, a 17‑year‑old retail employee entitled to 60% of the adult rate under the General Retail Industry Award 2020 would receive:

$24.10 × 0.60 = $14.46 per hour

Employers must consult the specific award for the applicable percentage at each age or apprenticeship year. The Fair Work Ombudsman’s Pay Calculator incorporates these junior and apprentice percentages automatically.

Compliance Obligations and Enforcement

The Fair Work Ombudsman is responsible for monitoring compliance with the new rates. Employers who fail to pay at least the applicable minimum rate — including casual loading — from the first full pay period on or after 1 July 2025 may be subject to:

• Underpayment recovery orders
• Civil penalties of up to $18,780 per contravention for an individual or $93,900 for a body corporate under the Fair Work Act 2009 (Cth) section 539
• Court‑ordered back‑pay with interest

Pay Slip Requirements

From 1 July 2025, pay slips must clearly show the base rate, the casual loading (if applicable), and the total hourly rate paid. The Fair Work Ombudsman’s Pay Slip Template was updated on 1 July 2025 to reflect the new rates. Employers are reminded that under regulation 3.46 of the Fair Work Regulations 2009, pay slips must be issued within one working day of pay day and must include the employer’s ABN or ACN.

Visa Holder Protections

The Fair Work Ombudsman has confirmed that all employees working in Australia, regardless of visa status, are entitled to the National Minimum Wage and casual loading (Fair Work Ombudsman, Visa holders and workplace rights, 1 July 2025). Temporary visa holders — including international students, Working Holiday Makers, and temporary skilled workers — are protected by the same minimum pay standards as Australian citizens and permanent residents. The Department of Home Affairs collaborates with the Fair Work Ombudsman to ensure that visa holders who report underpayment are not penalised for breaches of work‑related visa conditions that arise from their employer’s non‑compliance.

Actionable Steps for Employees and Employers

1. Check the applicable rate immediately. Employees should use the Fair Work Ombudsman’s Pay and Conditions Tool (updated 1 July 2025) to confirm the correct minimum rate for their award, classification and employment type. Employers must review every employee’s classification and ensure payroll systems are updated before the first pay run on or after 1 July 2025.

2. Verify casual loading is applied correctly. Casual employees should check their pay slip to confirm the 25% loading appears as a separate line item or is clearly embedded in the total hourly rate. The minimum casual rate for an award‑free adult is $30.13 per hour from 1 July 2025; any amount below this warrants immediate inquiry.

3. Review pay slips for the first pay period after 1 July 2025. The first pay slip issued after the effective date must reflect the new rates. Employees who do not see the increase should raise the issue with their employer in writing and, if unresolved, contact the Fair Work Ombudsman on 13 13 94.

4. Document hours and pay. Employees, particularly casuals and visa holders, should maintain their own records of hours worked, shifts, and pay received. The Fair Work Ombudsman can investigate underpayments going back six years, and contemporaneous records strengthen any claim.

5. Report underpayment without fear. Visa holders can report underpayment to the Fair Work Ombudsman anonymously through the translator‑assisted hotline. The Department of Home Affairs has confirmed that reporting workplace exploitation will not adversely affect a visa holder’s immigration status (Department of Home Affairs, Assurance Protocol for visa holders reporting exploitation, updated 1 March 2025).