We’re now at the end of July, which means the latest employment law changes have officially come into effect. But the big question is: have you updated your systems and processes to reflect them?
On 1 July 2025, several important changes kicked in, directly affecting employee pay, entitlements and employer obligations. If your business hasn't yet made the necessary adjustments, now is the time.
Here’s a quick recap of what changed:
Minimum Wage Increases
- The National Minimum Wage rose to $948 per week or $24.95 per hour (based on a 38-hour full-time week).
- All modern award minimum wages increased by 3.5%, and these increases apply to full-time, part-time and casual employees (with casuals receiving the updated base rate plus the applicable casual loading).
Parental Leave Expansion
- 120 days of government-funded parental leave are now available to eligible families (up from 110 days).
- No more than 105 days can be used by one parent alone. To access the full 120, both parents must be eligible and involved.
- Single parents receive the full 120 days.
- Superannuation is now payable on government-funded parental leave. This is a critical change for payroll and budgeting.
High Income Threshold Increase
- The high-income threshold for unfair dismissal claims is now $183,100.
- The maximum compensation cap is now $91,550 for dismissals occurring on or after 1 July.
- This threshold also applies to contractors challenging unfair dismissal or unfair terms.
Superannuation Guarantee Now 12%
- The compulsory superannuation rate increased from 11.5% to 12%.
- This applies to all eligible employees and may impact salary packaging or total remuneration strategies.
Additional Updates
- Pay changes under specific awards, including the Pharmacy Award.
- Right to disconnect laws come into effect for small businesses from 26 August 2025.
- Income and compensation thresholds have been adjusted in line with the new financial year.
Next Steps for Employers
Now is the time to:
- Review and adjust all pay rates and entitlements for award-covered staff.
- Ensure the salaries of award-offset employees remain above updated award minimums.
- Check that enterprise agreement base rates are not falling below the new award minimums.
- Update parental leave and superannuation policies, as well as payroll systems.
Need help reviewing your pay rates or policies?
The team at People Mosaic is here to guide you through every step. Whether you need help updating contracts, auditing compliance, or navigating award changes - reach out today for tailored support.
