If you have employees who are covered under an Award, you need to know that some Awards will have new definitions and minimum pay rates for entry-level classifications from 2025.
The Fair Work Commission has made changes to these awards as part of its Review of C14 and C13 rates in modern awards. These key changes happening for some awards include:
Introductory classifications can only apply for a limited time
Some awards currently include pay rates that fall below the National Minimum Wage. These rates typically apply to introductory classifications or entry-level positions. These classifications are sometimes referred to by names such as “C14,” “introductory,” or “Level 1” and are generally intended to apply only temporarily.
From 1 January or 1 April 2025, introductory classifications in the relevant Awards will be limited to a specified duration. These classifications are designed to cover the initial phase of a job, which includes:
All employment classifications that aren’t introductory classifications must be paid at least the National Minimum Wage.
The new maximum duration for introductory-level classifications varies across Awards but is capped at no more than six months.
In some Awards, employees may advance to the next classification level before reaching the maximum time limit. This progression could be based on demonstrating competency or obtaining a required qualification. Generally, employees will move to a higher classification based on whichever circumstance occurs first.
New rules and minimum pay for introductory rates
Minimum pay rates for some employees under affected awards may go up on the first full pay period on or after:
This is because employees who have been employed at their award introductory level for more than the maximum period on 1 January or 1 April 2025 may move to the next classification.
Any changes to an existing employee’s classification or expected progression to another classification should be discussed with the employee before 1 January or 1 April 2025.
Enterprise agreements
Some employers and employees may be covered by an enterprise agreement and not an affected Award.
If an employee is covered by an enterprise agreement and paid at introductory rates, their pay must still align with the new classification rate under the applicable award. This requirement will take effect from 1 January or 1 April 2025.
The industry the enterprise agreement sits in will determine when this rule applies from:
What you need to do
Employers should check their enterprise agreement and applicable Award(s) to ensure that any introductory rates meet at least the minimum base rates in their relevant award.
A list of affected Awards can be found below. Make sure you also check whether the changes take effect from 1 January or 1 April 2025 for you.
South Australian Business Chamber Members can also call our Business Advice Hotline on (08) 8300 0000 (select option 1) and one of our Workplace Advisers can help you understand whether these changes apply to your workplace and what you need to do.
List of affected Awards
Below are awards that have new rules for introductory classifications from 1 January 2025 or 1 April 2025:
1 January 2025
1 April 2025
How we can help
To find out more about the changes to Modern Awards and how they might affect your business, contact our Business Advice Hotline on (08) 8300 0000 (select option 1).
