In a significant development for Australia’s cleaning and hygiene sector, the Fair Work Commission (FWC) has announced a 3.5 percent increase in the national minimum wage, effective from 1 July 2025. This adjustment raises the minimum hourly rate to $24.94, translating to an additional $1,670 annually for full-time workers.
The wage hike directly impacts approximately 2.6 million low-wage workers, including those in the cleaning industry, which is governed by the Cleaning Services Award [MA000022]. Under this award, pay rates vary based on classification levels and employment types. For instance, a Level 1 casual cleaning service employee currently earns $31.21 per hour on weekdays, $43.70 on Saturdays and $56.18 on Sundays under the award. These rates are expected to increase in line with the new minimum wage adjustment.
“You need to look at this from both sides,” HR on Call director Melissa Behrend says. “From the employee perspective, with the cost-of-living crisis, it will provide some relief. However, from the business perspective, especially if they are operating on tight margins, it is difficult to manage, specifically for contracts already in play.”
FWC President Adam Hatcher emphasises the importance of this decision in preventing the permanent erosion of real incomes due to high living costs. With inflation easing to 2.4 percent, within the Reserve Bank of Australia’s two to three percent target range, the wage increase is seen as a real wage gain for workers.
The Australian Council of Trade Unions (ACTU) welcomed the decision, highlighting its benefit to workers hardest hit by post-pandemic inflation. However, employer groups have expressed concerns about the potential strain on investment and employment without accompanying productivity growth.
While wage increases help level the playing field for workers, Behrend notes that staff retention and recruitment depend on more than just pay. “The increase is a good start and certainly helpful. However, wages are not the only variable which influences retention,” she says.
For employers and employees seeking to understand how these changes affect their specific circumstances, the Fair Work Ombudsman provides tools such as the Pay and Conditions Tool (PACT) and the ‘Find Your Award’ service. These resources offer tailored information on pay rates, allowances and conditions based on individual roles and classifications.
As the cleaning and hygiene industry adapts to these changes, stakeholders are encouraged to stay informed and ensure compliance with the updated wage standards to support both fair compensation and sustainable business practices.
