Real wages are rising and so are compliance expectations.

The Fair Work Commission’s latest minimum wage decision marks a turning point for Australian businesses. For the first time in years, real wages, those adjusted for inflation are on the rise. 

With a 3.5% increase taking effect from 1 July 2025, low-paid workers across the country will see a genuine boost to their take-home pay. While this is good news for employees, it also signals a significant shift for employers especially those relying on manual or outdated timekeeping systems. 

When inflation outpaced wages during the pandemic years, many businesses focused on retention and cost management. But with the current wage environment shifting, so too are regulatory expectations. The Fair Work Ombudsman has already indicated a sharper focus on underpayment audits and award compliance in 2025–2026. 

For employers, that means one thing: your time and attendance processes need to be watertight. The Cost of a Mistake Just Got Higher Let’s put this in perspective. 

A 5-minute rounding error per day might have seemed minor when hourly rates were lower. But with higher wages, these small discrepancies can quickly escalate into costly errors, especially when applied to large shift-based or casual workforces. Add to this the complexity of modern awards, allowances, penalty rates, and breaks and suddenly payroll compliance becomes a minefield if your time data isn’t accurate and defensible. 

Modern time and attendance systems aren't just about capturing clock-ins and clock-outs. They’re compliance tools. They ensure: 

Breaks are enforced and recorded (especially critical under health, retail, and hospitality awards). 

• Start and finish times are transparent and audit-ready. 
• Award rules are applied consistently, such as overtime thresholds, span of hours, and loadings. 
• Supervisors are accountable for approvals and corrections.  

In a rising wage environment, this kind of precision isn’t just nice to have—it’s essential. 

• Audit your current attendance processes. Are you still relying on paper timesheets or spreadsheets? 
• Check for award alignment. Do your rules reflect current Fair Work decisions? 
• Invest in smarter systems. Consider solutions that can interpret awards, handle exceptions, and integrate seamlessly with payroll.              

Final Thought 

Wage increases reflect progress—but without accurate time tracking, they can also expose businesses to greater risk. 

In 2025, real wages are rising, and so are compliance expectations. 

Make sure your business is ready. Time & Attendance helps Australian businesses stay compliant with easy-to-use time and attendance solutions that scale with your workforce. Contact us today to find the right setup for your team.

jimc@timeandattendance.com.au

1300 553 254

0437 772 977