An Employer’s Guide to Minimum Wages in Australia 2025
Understanding minimum wages is crucial for employers in Australia to ensure compliance with Fair Work regulations and to provide fair compensation for employees. Minimum wages differ based on factors such as age, employment type (full-time, part-time, or casual), industry awards, and public holiday penalties. This guide provides detailed information on minimum wages in Australia 2025, including casual rates in NSW and VIC, public holiday rates, and junior pay rates.
Minimum Wages in Australia 2025
As of July 1, 2024, the Fair Work Commission has set the National Minimum Wage (NMW) at $24.10 per hour or $915.90 per 38-hour week. This rate applies to employees who are not covered by an award or registered agreement.
For employees covered by an industry award, wages may vary depending on the specific award, occupation, and job classification.
Related Content: Retail Industry Awards Pay Guide
National Minimum Wage Summary
| Employment Type | Hourly Rate | Weekly Rate (38 hours) |
| Full-time/Part-time | $24.10 | $915.90 |
| Casual (including 25% loading) | $30.13 | N/A |
Casual Pay Rates in NSW & VIC
Casual employees do not receive paid leave entitlements but are compensated with a 25% casual loading on top of the minimum wage.
Casual rates differ depending on the relevant industry award. The table below illustrates general casual pay rates in New South Wales (NSW) and Victoria (VIC) for some common industries.
Casual Minimum Pay Rate Examples in NSW & VIC (2025)
| Industry | Base Hourly Rate | Casual Hourly Rate (+25%) |
| Retail | $25.65 | $32.06 |
| Hospitality | $24.10 | $30.13 |
| Aged Care | $25.62 | $32.03 |
| Construction | $27.00 | $33.75 |
| Cleaning | $24.97 | $31.21 |
Employers should check the specific award applicable to their industry on the Fair Work Ombudsman Pay Calculator to ensure correct wage payments.
Public Holiday Rates in Australia
Employees working on public holidays are entitled to penalty rates. These vary depending on the industry award but are generally 150% to 250% of the base pay rate.
Standard Public Holiday Penalty Rates
| Employment Type | Penalty Rate |
| Full-time/Part-time | 150% - 200% (1.5x - 2x) |
| Casual (including casual loading) | 175% - 250% (1.75x - 2.5x) |
For example, if a casual employee in the hospitality industry works on a public holiday, they might be entitled to 250% of their base pay.
Minimum Wage in Sydney & Melbourne 2025
The minimum wage in Sydney and the minimum wage in Melbourne follow the national minimum wage unless a specific industry award applies.
Employers should refer to the relevant industry awards, as certain cities may have higher costs of living, leading to enterprise agreements that provide higher wages.
Minimum Wage for a 16-Year-Old in Australia
Junior employees under 21 are usually paid a percentage of the adult minimum wage, increasing with age.
Junior Minimum Pay Rates (2025)
| Age | Percentage of Adult Rate | Hourly Rate (Based on $24.10) |
| 16 years | 47.3% | $11.39 |
| 17 years | 57.8% | $13.42 |
| 18 years | 68.3% | $16.46 |
| 19 years | 82.5% | $19.88 |
| 20 years | 97.7% | $23.55 |
Source: https://awu.net.au/minimum-wage/
Some industry awards provide higher junior rates, so it is essential to check specific awards before finalising wages.
Key Considerations for Employers
1. Industry Awards & Agreements
Employers should always refer to modern awards or enterprise agreements to ensure compliance with pay rates, allowances, and penalty rates.
2. Annual Wage Reviews
The Fair Work Commission reviews the minimum wage each year, with adjustments usually taking effect on July 1.
3. Superannuation Requirements
Employers must contribute 11.5% of an employee's earnings to their superannuation fund in 2025.
4. Record-Keeping Compliance
Employers must maintain accurate records of employee hours, wages, and entitlements to comply with Fair Work regulations.
5. Tax & Deductions
Employees earning above the tax-free threshold ($18,200 per year) are subject to income tax deductions based on ATO tax brackets.
Conclusion
Employers must stay updated on minimum wage changes to ensure compliance with Fair Work Australia regulations. Whether hiring casuals, full-time, part-time, or junior employees, understanding the correct pay rates, penalty rates, and superannuation obligations is essential.
For the most accurate and up-to-date pay rates, employers should consult the Fair Work Ombudsman Pay Calculator or check their relevant industry awards.
- Fair Work Commission Wage Reviews: https://www.fwc.gov.au/
- Australian Tax Office (ATO) Tax Rates: https://www.ato.gov.au/
By following this guide, employers can confidently navigate minimum wage regulations in Australia for 2025, ensuring compliance and fair pay practices.