Change of award rates/superannuation rate

The Fair Work Commission handed down the Annual Wage Review 2025-2026 decision on Tuesday 3 June.  The minimum rates of pay under the Health Professionals and Support Services Award 2020 and the Nurses Award 2020 will increase by 3.5 per cent effective 1 July 2025.

The Workplace Relations Team will release the Rates of Pay Guide for 2025-2026 in July in line with the commission’s determinations for employees under both awards.  Please note that superannuation guarantee will increase from 11.5 per cent to 12 per cent from July 1, 2025. Employers will need to use this new rate to calculate superannuation on payments made to employees on or after 1 July. 

It is likely that practice owners and practice managers will have questions about what this may mean for them and their staff, and the impact to salary increases for review cycles outside of this timeframe and above the award.

We have put together an FAQ guide to help you understand any changes that may be made and any changes you may have to make. 
 

What do I do if my staff are being paid the award minimum rate of pay?
If staff are being paid the minimum award rate it will be necessary to increase their rate of pay to the new award minimum. This means you will need to discuss and confirm with your employees their new rate of pay. Confirmation of their new rate should be communicated in writing via email correspondence or a letter of amendment to their contract. It is important that you clearly communicate the change in rate and how much it varies by with your staff.
 

What if my staff are being paid above the Award, do I need to increase their hourly rate?
Staff who are already being paid above the Award may not need to receive an increase in pay. It is important that employers refer to the new Rate of Pay Guide to see what the rate of pay has increased to for their classification and pay point levels. If your employees current award rate is still above the minimum within the guide, you may not need to increase their hourly rate of pay.

How does this impact my employees on a Grossed-up Wage Contract?
If staff are being paid above the minimum award rate and you are absorbing certain entitlements into their above Award wage, you may need to increase their rate of pay to ensure they remain better off under the agreement. It is important that employers review their staff’s better off overall test (BOOT) calculations to identify whether their rate of pay should be reconsidered to accommodate the increases. For all Workplace Relations Toolkit subscribers, the Workplace Relations Team can determine whether staff remain better off under the agreement. When do I need to increase my employees’ hourly rate of pay?
 

As the new Award minimum rates of pay will be operative from 1 July, applicable staff will receive the increase in their rate of pay from 1 July 2025. This may mean that some staff will receive two different rates of pay within this time.
 

For example, if your payment period is fortnightly and you have staff who are paid the award minimum rate of pay, the following rates would apply for the period.

Are there times when I wouldn’t consider an increase?
The simplistic answer is yes, if an employee is being paid in line or above the Award and on a performance improvement plan then a salary increase would be inconsistent with the performance improvement approach.

If you have any questions regarding anything in this article or would like to purchase the Toolkit or template contracts pack then please do not hesitate to reach out to the Workplace Relations Team on 07 3872 2264 or workplacerelations@amaq.com.au

AMA Queensland Workplace Relations Phone: 07 3872 2264  Email: workplacerelations@amaq.com.au