Hospitality workers to benefit from minimum wage increase
Around 2.6 million Australians on minimum and award wages are set to receive a 3.5% wage rise, following a decision handed down by the Fair Work Commission (FWC) during its annual review in Sydney. Workers most affected are predominantly in sectors such as hospitality, healthcare, retail and administration, with a significant proportion working part-time or on casual contracts.
From 1 July 2025, the national minimum wage will increase from $24.10 to $24.94 per hour. For a full-time worker, this equates to a rise from $49,770 to $51,511.95 per year — or an extra $32 per week.
The increase outpaces the current inflation rate of 2.4% and reflects the federal government’s call for a real wage rise, though it falls short of the 4.5% proposed by the Australian Council of Trade Unions (ACTU).
FWC president Adam Hatcher acknowledged that wage growth had not kept pace with inflation in recent years, saying, “The result has been that living standards for employees dependent on Modern Award wages have been squeezed, and the low paid have experienced greater difficulty in meeting their everyday needs.”
Hatcher also noted constraints on this year’s increase, including weak labour productivity in the non-market sector, superannuation cost increases, and geopolitical uncertainties.
ACTU national secretary Sally McManus welcomed the decision, saying, “3.5 per cent means they’re starting to catch up again, and that makes an enormous amount of difference in terms of people’s bills, people’s ability to pay for the basics.
“The very worst thing for small businesses is if workers’ wages are going backwards. It means they have to cut back, the very first place they cut back on is things that they can’t afford to,” she said
“So, that’s the little bit extra, it might be the coffee, it might be the sandwich, it might be a beer at the pub … You can’t cut out your rent, can’t cut out your bills.
Prime Minister Anthony Albanese said the outcome reflects his government’s commitment to lifting real wages, while Employment Minister Amanda Rishworth called it a “sustainable” improvement.
“It’s what my government was re-elected to do during the last term we had a range of cost-of-living measures, all of which were opposed by the Coalition,” he said.
The Coalition supported the increase, though shadow minister Tim Wilson warned of the added pressure on small businesses.
“With little room for small businesses to pass on additional costs to cash strapped consumers it is important the government puts in place the right conditions for business to succeed,” Wilson said.
Jonathan Jackson, 3rd June 2025
