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Are you across the new pay rates and rules coming to 37 modern awards in 2025?��

From January, new pay rates and new rules about how long employees can stay at the lowest classification level in modern awards will come into effect.��

The Fair Work Commission (FWC) has made final decisions which will affect employees classified at the lowest classification level in several modern awards.�� For the vast majority of the impacted awards, the changes will take effect on 1 January 2025. It’s essential employers are across their obligations, especially with upcoming legislation changes like Payday Super. The affected awards fall into three categories:

• Group 1: Where there are new rules about how long employees can stay in the lowest classification
• Group 2: Where there are increases to pay rates for employees at some of the lowest classification levels
• Group 3: Where the award contains both new rules about length of time in the lowest classification and new pay rates

*Did you know? If your award is not listed above, there will be no changes for you. However, use this as a reminder to know which award(s) do apply to your business. It’s also a good time to make sure that all employees have been classified at the correct level.

Group 1: New rules about how long employees can stay at the introductory level

The first group of awards is where there will be new rules about introductory levels. This will operate so that employees can only stay at the lowest classification level in the award for a maximum period of time.�� This will vary from award to award, but the maximum period that an employee will be able to remain at the introductory level under any affected award will be 6 months. After this, the employee must progress to the next classification level.

For example, under the Manufacturing and Associated Industries and Occupations Award 2020 (‘Manufacturing Award’) the lowest classification is currently the “C14 – Engineering/Manufacturing Employee—Level 1” classification.��

Wording will be inserted into the Manufacturing Award to say that an employee will only be able to work in this classification for a maximum of 3 months. After that they will need to be classified at the next level up, ie the “C13 – Engineering/Manufacturing Employee—Level 2” classification. For most awards, these changes take effect on 1 January 2025.�� One of the consequences of these changes will mean that where an employer currently has employees who have been employed under the lowest classification level for longer than the new maximum period, they will need to be automatically re-classified at the next level up (and receive the appropriate pay rise) from 1 January 2025.

For example, if someone under the Manufacturing Award has already been at C14/Level 1 for at least 3 months as at 1 January 2025, they will need to move to C13/Level 2 on this date.��

It’s therefore crucial that any employer covered by any of the awards affected by this decision understands the new maximum period that employees can be classified at the lowest classification level under their award.

Awards changing on 1 January 2025

• Airline Ground Staff Award
• Amusement Award
• Animal and Veterinary Services Award
• Australian Government Award
• Dry Cleaning and Laundry Award
• Fitness Award
• Food and Beverage Manufacturing Award
• Funeral Award
• Graphic Arts and Printing Award
• Joinery Award
• Live Performance Award
• Manufacturing Award
• Marine Tourism and Charter Vessels Award
• Meat Award
• Pest Control Award
• Port Authorities Award
• Textile, Clothing, Footwear and Associated Industries Award
• Timber Award
• Travelling Shows Award
• Vehicle Award

Awards changing on 1 April 2025

• Horticulture Award

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Group 2: New rates of pay for employees at some of the lowest classification levels

The second group of awards will see an increased rate of pay for employees at some of the lowest classification levels.

For example, under the Children’s Services Award 2010, the Level 1.1 classification currently has a minimum rate of pay of $910.90 per week or $23.97 per hour.

As of the first full pay period on or after 1 January 2025, this rate will increase to $915.90 per week or $24.10 per hour. If you are an employer covered by one of the impacted awards, it will be vital that you increase the rates of pay for any employee classified at any of the levels which are increasing. A list of all of the impacted awards is set out below (together with a link to the FWO’s updated pay guides). All of these awards will be amended from 1 January 2025.

Awards changing on 1 January 2025

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Group 3: Awards with new rules about how long an employee can stay at the introductory level AND pay increases

The third group of awards contain new rules about the maximum period of time an employee can stay at the introductory level, plus��pay rate increases for some of the lowest classifications. All of these changes take effect on 1 January 2025, except for the Pastoral Award which is being amended from 1 April 2025. A list of all of the impacted awards is set out below (together with a link to the FWO’s updated pay guides)

Awards changing on 1 January 2025

Awards changing on 1 April 2025

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Need further help?

If you need further help understanding which modern awards apply to your business, or if you need assistance in working out how these changes will impact you, 91����’s HR Advisory Service gives you unlimited access to a team of HR experts to guide you through the minefield of ever-changing employment law.��

Disclaimer: The information in this article is current as at 11 December 2024, and has been prepared by 91���� Pty Ltd (ABN 11 160 047 709) and its related bodies corporate (91����). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified and no warranties are given that it is complete, accurate, up to date or fit for the purpose for which it is required. 91���� does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising either directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and to seek professional advice before making any decisions or relying on the information in this article.