United Workers Union members win 3.5 per cent award wage increase
The Fair Work Commission announced an increase of 3.5 per cent for workers on minimum and award wages on June 3, 2025. For the average award worker, this increase will see about $30 extra in weekly wages. The increase comes after thousands of United Workers Union members contributed to our submission to the Fair Work Commission asking for a 4.5 per cent increase.
We’re told inflation has been slowing, but the cost-of-living crisis continues, so this is a very welcome increase. Close to three million workers on award wages will get some much-needed relief with at least a $1669 per year pay boost. It’s an important win, ensuring all workers’ wages keep increasing along with the Consumer Price Index (CPI). This is what we call an increase to real wages.
When will I get the increase?
The new rates were announced by the Fair Work Commission (FWC) on June 3 after they completed their annual wage review. The new rates kick in in July, effective from the first full pay period commencing on or after 1 July, 2025. Workers on the national minimum wage will see their wages increase from $24.10 to $24.95 per hour.
The FWC’s decision will be a welcome relief to countless UWU members in award-reliant industries like aged care, cleaning, disability support, early education, hospitality and security and, of course, all workers on minimum wages.
I already earn above award wages, will I get a pay increase?
If your pay rate is covered by an enterprise bargaining agreement (EBA), you most likely already earn wages above the award minimum, meaning you won’t automatically receive this increase. But, if your EBA is tied to the award (as many are), your pay rate will most likely increase by at least the same percentage when your EBA comes up for renegotiation. It’s also important to remember that, an EBA cannot legally pay under the award. So, if this is the case, you will get an automatic pay increase.
Another exception is workers on state-based awards. The FWC decision is for national awards. However, when the award minimum increases, it typically has a flow-on effect for UWU members everywhere to push for more.
How UWU members helped win this wage increase
During this year’s award wage review process, the FWC again received first-hand accounts from UWU members about the impact of rising costs on workers and their households, and the real-life stories that back our call for continued award wage increases.
Sarah’s story:
“By the time I get paid and all my bills come out I have $200 left for groceries and petrol. It’s crazy. Plus, my rent is about to go up … An increase would make heaps of difference”
As happens every year, the FWC heard from a range of groups including unions, employers, charities and not-for-profits. Federal and state Labor governments also made submissions supporting our claims that workers still need substantial wage increases to keep up with the rising cost of living.
Employer groups tried to argue for an increase of just two per cent that would have resulted in a $1000 per year cut to workers’ wages in real terms when accounting for inflation.
The gender pay gap and a continued push for wage increases
We represent members in some of the 13 award classifications identified by the FWC as having gender-based undervaluation. In other words, industries that have a majority female workforce – such as Early Childhood Education and Care – are being reviewed separately by the FWC for a further increase to their specific award classifications.
This year’s minimum and award wage increase builds on a 3.75 per cent increase in 2024 and an historic 5.75 per cent increase in 2023, which was the largest increase ever awarded. Employers were unable to make their case that consecutive award wage increases, Labor’s stage 3 tax cuts and energy relief payments would be enough to keep our wages ahead of inflation.
As UWU members, we play a critical role in winning wage increases. It’s an important reminder that people power is what wins change in the end.
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