You could be in line for a pay rise worth thousands a year starting from July 1.
But here’s the catch: your boss might not tell you — and unless you know what to look for on your payslip, you could miss out on this extra cash that you are legally owed.
In Australia, one in four workers is paid according to an “award.” Awards aren’t just prizes you win in a competition – they are also your guide to what pay and rights you have at work. They set out the bare minimum — there is nothing stopping your boss from giving you more, but it’s against the law for them to give you less.
Each industry has its own award — retail has a retail award, hospo has a hospitality award and so on. Each award has minimum rates of pay, depending on the job you do and often how much skills or experience you have.
Most workplaces are covered by an award that sets out these minimum pay rates for a sector, and this is often higher than the minimum wage.
Union members fought for awards so that workers have these protections and so there is a minimum standard that all bosses have to follow. We also fought to have a fair system so the pay rates in awards have a chance to increase every year.
How are awards decided?
Every year an independent umpire, the Fair Work Commission, hears from unions, employers and governments and decides whether award pay levels should increase and by how much. Unlike other countries, the minimum pay rates for this safety net are set by our independent workplace umpire.
Award wages change every year through a process called the Annual Wage Review, where the Fair Work Commission asks interested parties to present their case on how much awards should increase.
Every year, unions argue for higher increases to minimum and award wages, while cashed-up employer lobby groups push for the opposite. The Fair Work Commission has the final say — and this year, the Commission ruled that from the first full pay period after July 1, bosses must deliver a 3.5 per cent pay increase to all the minimum pay levels in awards. Inflation is currently 2.4 per cent, meaning this above-inflation pay rise represents a ‘real wage increase’ for nearly 3 million workers.
It’s important to know that this isn’t just a regular pay rise negotiated between you and your boss — this is a legal adjustment to the wages floor. If you are being paid more than what the new award minimums are after 1 July, you only get a pay increase if you or your union have negotiated one with your employer.
However, not all bosses pay this 3.5 per cent increase. They might forget, make a mistake or just be ripping you off.
Union analysis of data from the Australian Bureau of Statistics showed that around 400,000 Australians — one in five workers aged under 25 — are paid below the legal minimum wage for their age. Young people are disproportionately impacted by wage theft, especially those in part-time and casual work.
How to check if I’ve been affected by wage theft?
From January 1, 2025, wage theft became a criminal offence in Australia following years of campaigning by unions. This means that employers who deliberately engage in wage theft can now face criminal consequences and big fines.
Here’s a quick way to check if your boss has done the right thing:
Step 1: Look at your payslip from the last full pay period in June
Step 2: Wait until your first full pay period after July 1 (ie the first pay that does not include any days in June) and check that payslip
Step 3: Compare the hourly rate between the two payslips. Has it gone up by at least 3.5 per cent? If something feels off, Google ‘Australian Unions’ and get in touch.
If you are not being paid above the new award minimum and you want to earn more than the award minimum, you have to negotiate with your boss. Individual workers don’t have much bargaining power, which is why people join together in unions to negotiate a collective agreement (which means an agreement that applies to everyone) to earn more. According to the Australian Bureau of Statistics, workers on collective agreements earn about $200 per week more than people not on agreements.
This is about more than money. It’s about fairness, because you deserve every cent that is legally yours — it’s the law.
If you think your boss is cutting corners but you’re afraid to speak up, it’s probably time to join your union.
Image credit: The Devil Wears Prada / 20th Century Studios
Sally is the 10th Secretary of the ACTU. She was the leader of her union, the ASU in NSW representing community, public sector and private sector workers. Sally has also worked as a Pizza Hut delivery driver, shop assistant and cleaner and studied Philosophy at University.
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