Changes to the Employment framework as announced by the Fair Work commission

With the new financial year underway, the Fair Work Commission (FWC) has announced its annual updates to workplace and employment laws. Here’s what you need to be across regarding these changes.

Increase to the Superannuation Guarantee

From 1 July 2025, the superannuation guarantee will increase to 12%, up from 11.5% in the previous financial year. This is the final stage of the phased increases to the superannuation guarantee, with the rate expected to remain at 12% until at least 30 June 2028 and beyond.
 
Increases to the National Minimum Wage and Award Wages

On 16 June 2025, the Fair Work Commission (FWC) announced updates to the National Minimum Wage and Award Wages. The National Minimum Wage will rise to $948.00 per week (or $24.95 per hour), up from $915.90 per week (or $24.10 per hour). Additionally, all minimum award wages will increase by 5%.
These changes take effect from the first full pay period on or after 1 July 2025. Employers covered by enterprise agreements tied to award minimums must ensure their rates align with the updated award minimums to avoid underpayment risks or penalties.
The high-income threshold for unfair dismissal claims will also increase to $183,100.00 from 1 July 2025, with the compensation limit rising to $91,550.00.
Employers should review their obligations under modern awards to remain compliant.

Right to Disconnect

From 26 August 2025, the right to disconnect will apply to small business employers (less than 15 employees).

Eligible employees will have the right to refuse contact outside of their working hours, unless that refusal is considered unreasonable.

If you have any questions please contact me paul@congdonfuzi.com.au