Significant changes to employment obligations will take effect from 1 July 2025, impacting wages, superannuation, and employee entitlements. Employers should review their payroll and HR processes to ensure compliance.

1. Increase to the National Minimum Wage and Award Wages

From the first full pay period starting on or after 1 July 2025, the National Minimum Wage will rise by 3.5%.

The new rates are: $948 per week, or $24.95 per hour

This increase also applies to minimum award wages, so employers should review employee pay rates to ensure they meet or exceed the updated award rates.

2. Superannuation Guarantee Increase to 12%

The superannuation guarantee (SG) rate will increase from 11.5% to 12% on 1 July 2025. Employers must update payroll systems to ensure the correct SG rate is applied to all eligible employees from this date.

3. Changes to Parental Leave Pay

From 1 July 2025:

• Eligible carers of a child born or adopted on or after this date will be entitled to up to 24 weeks of government-funded Parental Leave Pay, shared between parents.
• Parental Leave Pay will continue to be paid at the National Minimum Wage rate and is separate to any employer-provided paid parental leave.
• The Australian Taxation Office (ATO) will also begin making superannuation contributions (12%) on Parental Leave Pay for children born or adopted after 1 July 2025. These contributions will commence from July 2026.

4. Right to Disconnect Laws for Small Businesses

From 26 August 2025, small businesses will also need to comply with the new right to disconnect laws, which already apply to larger employers.

Under these laws:

• Employees have the right to refuse to monitor, read or respond to contact (or attempted contact) outside their normal working hours, unless the contact is reasonable.
• This applies to contact from both the employer and third parties.

Employers should review workplace policies and consider setting clear expectations around after-hours communication.

What Employers Should Do Now

✔ Review pay rates to ensure they meet the updated National Minimum Wage or applicable award rates.
✔ Update payroll software to apply the new 12% superannuation guarantee rate.
✔ Communicate changes to employees, particularly regarding parental leave entitlements.
✔ Update workplace policies to address after-hours contact and ensure compliance with the right to disconnect.

If you’re unsure how these changes affect your business, we can help you review your payroll, award obligations, and HR policies to ensure compliance.

If you have any questions, require assistance, or would like to discuss any of the above changes, please feel free to give me a call to arrange a time to discuss.