Minimum Wage and Award Increases Announced For 2025-26

The Fair Work Commission (FWC) handed down its Annual Wage Review decision on Tuesday 3 June, confirming a 3.5% increase to the National Minimum Wage and minimum wage rates within Modern Awards.

This increase will take effect from the first full pay period on or after 1 July 2025.

The Decision can be found here - Annual Wage Review 2025 – anouncement of decision

As an employer, you are required to ensure that your employees are paid in line with the updated minimum entitlements under the applicable Modern Award. The key Modern Awards relevant to MPAQ members include:

• Plumbing and Fire Sprinklers Award 2020
• Clerks – Private Sector Award 2020
• Building and Construction General On-site Award 2020
• General Retail Industry Award 2020

Once the Fair Work Commission publishes the determinations updating award allowances, MPAQ will release revised wage and allowance schedules. The MPAQ HR team will make these updated wage sheets available in the coming weeks and will have them accessible via the MPAQ website from 1 July 2025.

Wage sheets

The minimum wage sheets are now available on our website. It is important businesses make adjustments to their payroll systems to ensure any increases apply from the first full pay period on or after 1 July 2025.

Access the wage sheets on your member dashboard

STP Phase 2

In accordance with the ATO STP (Single Touch Payroll) Phase 2 requirements, each allowance must be separated out on an employee’s payslip.

This means, each allowance, such as industry allowance, special fixed allowance, registration allowance etc, must be a separate line item on an employee’s payslip, including for apprentices.

We have been working with Xact accounting who have put together some information and a video of how to implement with Xero. Please click on the following below.

STP Phase 2 is Here! Are You Ready? | Xact Accounting

Superannuation Guarantee Rate – Increase

Members should be aware of and prepared for a Superannuation Guarantee Rate (SGR) increase from 11.5% to 12%. The SGR increase will take effect from 1 July 2024.

You'll need to use the new rate to calculate super on payments you make to employees on or after 1 July, even if some or all of the pay period is for work done before 1 July 2025.

Make sure you update your payroll and accounting systems so that you continue to pay the right amount of super for your employees.

If you are unsure if your employees are covered by a modern award or the national minimum wage, please contact the MPAQ Advisory team on 07 3273 0800 or email advice@mpaq.com.au.