Key 2025 Workplace Law Updates

1. National Minimum Wage Increase

Fair Work has increased the national minimum wage by 3.5%, now set at:

• $24.95 per hour, or
• $948.00 per week (full-time equivalent).

Employers will need to:

Update payroll systems to reflect new minimum and award rates.

Review all employment contracts to ensure compliance with base pay obligations.

Communicate changes to staff, especially award-reliant employees.

Note: The increase applies from the first full pay period on or after 1 July 2025.

2. Superannuation Guarantee Now 12%

From 1 July 2025, the Superannuation Guarantee (SG) rate has officially increased to 12%, completing the phased increases set by earlier reforms.

Action items for employers include:

• Adjusting payroll software and employer contribution systems.
• Communicating the change to employees.
• Reviewing total remuneration packages to ensure SG increases are accounted for appropriately (especially where packages are inclusive of super).

3. Paid Parental Leave Expansion

Eligible employees can now access up to 24 weeks of government-funded Paid Parental Leave for births or adoptions from 1 July 2025.

Plus, looking ahead to July 2026, the government will begin paying superannuation contributions on Paid Parental Leave – so now is a good time to prepare for future adjustments.

How businesses can prepare:

• Update internal leave policies and parental leave procedures.
• Budget for potential top-ups or super contributions if provided voluntarily.
• Support returning parents with clear re-entry plans and flexible work arrangements.

4. Small Business: Right to Disconnect (Effective 26 August 2025)

From 26 August 2025, employees at small businesses (fewer than 15 staff) gain the legal right to disconnect – meaning they can refuse work-related communication outside normal hours, unless refusal is unreasonable.

What businesses should do:

• Draft and implement a “right to disconnect” policy.
• Clearly define expectations around availability, response times, and emergencies.
• Train managers to avoid after-hours contact unless absolutely necessary.