2024-25 Annual Wage Review – Progress Update

As we edge towards the half-way point of the year, the Annual Wage Review process has entered its final stages, with the deadline for submissions having passed mid-month and consultations scheduled in Sydney on 21 May. Whilst it is feasible a decision could be handed down as early as 30 May, it is more likely this year’s timeline will mirror 2024, meaning publication in early-June is a more probable outcome. [UPDATED: the decision will be handed down on Tuesday 3 June]

With inflation sitting at 2.4%, submissions from employer and employee groups present contrasting arguments as to what size of increase is warranted in minimum award rates from 1 July 2025. The Government has doubled down on its position that the Commission should award an “economically sustainable real wage increase” arguing that the economy “has turned a corner”, with inflation “now less than one third of its peak”, adding that wage increases “can be both economically responsible and fair”.

The ACTU has lobbied for an increase of 4.5%, while a research paper authored by The Australia Institute’s Centre for Future Work suggests an increase of 9.2% is necessary to restore low-paid workers’ buying power to pre-pandemic trends and “fully undo the damage” wrought by cost-of-living rises over the past three years. The Australian Catholic Council for Employment Relations supports the ACTU’s proposal of a 4.5% rise but would endorse an even higher increase, noting a wage rise in excess of 12% “would still leave couple-based households with dependents in poverty relative to the [National Minimum Wage]”.

Most employer groups have argued for a wage rise of 2.5% in modern award rates and the National Minimum Wage (NMW), though some favour an increase as low as 2%, acknowledging the impending 0.5% increase to superannuation contributions which will also impact from 1 July 2025.

In recent years, the Minimum Wage Panel has awarded increases to award rates/NMW as follows:

  • 2022 – 4.6% per week, or, $40 per week (whichever was the greater amount);
  • 2023 – 5.75% per week (with a higher increase flowing to the NMW);
  • 2024 – 3.75% per week.

ES Subscribers will be notified by email within the hour when the 2024-25 Annual Wage Review decision is handed down. You can also follow Employer Services on Facebook to ensure you’ll be the first to know.