Australia
Payroll Remediation Program guide
Impact date: 1 May 2025 The Fair Work Ombudsman (FWO) is Australia’s national employment standards enforcement body. The FWO has published a Payroll Remediation Program guide (PRP Guide) to assist employers and their representatives to identify and correct underpayments of employee entitlements. The PRP Guide outlines the suggested elements of a payroll remediation process and provides case studies and examples for illustrative purposes.
Employer implications/action needed Employers should have careful regard to the PRP Guide should they become aware of actual or suspected underpayments within their organization.
Employer risk Employers who do not follow the PRP Guide when responding to underpayments face added risk of prosecution.
Rates increases
Impact date: 1 July 2025 The Fair Work Commission (FWC) is Australia’s national tribunal that sets minimum employment standards. Each year, the FWC is required to conduct an Annual Wage Review, which entails updating the National Minimum Wage (NMW) and the minimum wage rates prescribed by modern awards.
The NMW is the lowest amount per hour of work that an employer is permitted to pay an employee who is not covered by a modern award or enterprise agreement (i.e. collective agreement). From 1 July 2025 the NMW is $24.95 per hour.
The FWC also increased all modern award minimum wage rates, effective from 1 July 2025 by 3.5%.
Employer implications/action needed Employers should review all of their rates of pay to ensure that they are not less than the NMW or the applicable modern award rate, to ensure that they align with the new rates commencing 1 July 2025. The Annual Wage Review also affected minimum amounts payable for work and expense related allowances.
Employer risk Significant civil and criminal penalties apply to employers and managers who fail to pay minimum rates of pay or other minimum entitlements in accordance with the NMW, modern award rates of pay or enterprise agreements.
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