August 20, 2025 
From pay rises to parental leave perks, July 2025 brought in two big changes that every Australian employer should know about. These updates aim to ease cost-of-living pressures and support working families, especially women and younger workers. Here’s what’s changed, why it matters, and what you need to do to stay compliant.
Minimum Wage Increased to $24.95/hour
What’s new:
From 1 July 2025, the National Minimum Wage has increased by 3.5%, now sitting at $948 per week or $24.95 per hour for full-time adult employees. This applies to employees not covered by an award or enterprise agreement.
What it was before:
In 2024– 25, the minimum wage was $915.90 per week or $24.10 per hour, meaning this year’s increase adds $32.10 per week to base pay.
- Casual employees: Casuals must now receive $31.19 per hour, which includes the 25% casual loading.
- Award-covered employees: Most employees are covered by an industry or occupational award, which also saw a 3.5% increase to minimum rates. This includes junior, apprentice, and supported wages.
Why it matters:
This increase affects over 20% of Australian workers, many of whom are women, part-time, casual, or younger employees. It’s designed to help offset cost-of-living pressures and inflation.
What employers should do:
- Apply new rates from the first full pay period on or after 1 July 2025.
- Use the Pay Calculator to check updated rates for your industry or award.
- Ensure enterprise agreements meet or exceed the new minimums.
Boost to Paid Parental Leave: Superannuation + More Weeks
What’s new:
Eligible employees who are the primary carer of a child born or adopted from 1 July 2025 can now access up to 24 weeks of government-funded Parental Leave Pay, shared between parents. This leave is paid at the National Minimum Wage and managed by Services Australia.
In addition, these employees will also receive superannuation contributions at 12% on their Parental Leave Pay. While the entitlement begins from 1 July 2025, the super payments will be made from July 2026 and will be paid directly by the Australian Taxation Office (ATO) to the employee’s super fund.
What it was before:
For children born or adopted between 1 July 2024 and 30 June 2025, families were entitled to 22 weeks of Parental Leave Pay, with no superannuation contributions.
Why it matters:
These changes are part of a broader push to make workplaces more equitable and family-friendly. By adding superannuation to Parental Leave Pay and extending the leave period, the government is helping close the gender super gap and encouraging shared caregiving. For employers, it’s a chance to align with evolving expectations around workplace support and gender equity.
What employers should do:
- Update internal policies to reflect the extended leave period.
- Communicate the superannuation change to employees planning parental leave.
- Coordinate with payroll and HR systems to ensure compliance.
- Direct employees to Services Australia – Parental Leave Pay for eligibility and application details.
- For new employees, use the latest Fair Work Information Statement (FWIS).
Final Thoughts
These changes mark a meaningful shift in how Australia supports working families and addresses economic inequality tied to caregiving. For employers, it is not just about compliance — it is about staying aligned with evolving expectations around fairness, flexibility, and financial wellbeing.
To stay across other updates from this financial year, including changes to payroll and tax, check out our latest update.
“The content of this publication is for reference purposes only. It is current at the date of publication. This content does not constitute legal advice and should not be relied upon as such. Legal advice about your specific circumstances should always be obtained before taking any action based on this publication.”
