Human Resources

The 2024-2025 Annual Wage Review

On 3 June 2025, the Minimum Wage Panel of the Fair Work Commission handed down the 2024-2025 Annual Wage Review decision, which provided a 3.5% increase to the minimum wage, with minimum award rates also increasing by 3.5%. These changes came into effect from 1 July 2025. 

This year’s increase to the Modern Award Minimum Wage is less than last year’s, which saw a 3.75% increase. However, the Commission is satisfied that the 3.5% increase is sustainable, noting low unemployment, rising employment, and high workforce participation, which together lead to a strong labour market. 

If you pay above-award (“over-award”) rates, annual wage increases may be absorbed into those payments unless an enterprise agreement, contract of employment, or a written arrangement states otherwise. It’s best practice to review your overaward rates annually to ensure they continue to absorb the National Minimum Wage increase.  

Allowances under modern awards are updated in different ways: some are adjusted using CPI movements (expense-related allowances), and others are expressed as a percentage of a standard rate. 

Applicable Award(s) for Civil Construction Work 

Many civil construction roles are covered by the Building and Construction General On-site Award 2020. However, coverage can vary depending on the employee’s duties, the work performed, and any applicable enterprise agreement. 

If you’re unsure which instrument applies, use the Fair Work Find my Award Tool or seek workplace relations advice. 

Calculation of Rates under the Building and Construction General On-Site Award 2020

Weekly (full-time and part-time) employees

Minimum rates are set by classification. For many classifications, the “all-purpose” hourly rate is made up of: 

• the base hourly rate for the employee’s classification; plus
• the industry allowance (currently $64.10 per week or $1.69 per hour for (general building/civil/metal & engineering sectors) ); plus 
• any other all-purpose allowances that apply to the employee (for examples, see Clauses 21 – 23 of the award),  

Weekly ordinary-time pay is generally calculated by multiplying the applicable all-purpose hourly rate by 38 hours (or the employee’s ordinary hours under the award/contract). Penalties, overtime, travel, allowances and other loadings may apply in addition to ordinary-time pay. 

Casual Employees

Casual employees are generally paid the casual hourly rate, which includes the casual loading, 25% on top of the ordinary-time rate. Penalties, overtime, and allowances may apply in addition to the casual rate. 

Minimum Building and Construction Award Rate 

The Minimum Rates prescribed in the tables below do not include industry allowances or other common allowances (e.g. tool and employee protection allowance, underground allowance, air conditioning industry and refrigeration industry allowances, electrician’s licence allowance, in charge of plant allowance). If an employee is entitled to any of these allowances, they need to be factored into the Actual Rate payable. 

Use the Pay and Conditions Tool Calculator or Fair Work Pay Guide Table for a full list of rates. 

P.A.C.T | Pay and Conditions Tool 

The regulator for the building and construction industry in relation to wages and entitlements under the Fair Work Act 2009 (Commonwealth) is the Australian Building and Construction Commission (www.abcc.gov.au). 

This information does not constitute legal advice and is meant to be used only as a guide. 

Find out more

CCF Victoria HR consultants are able to assist contractors in meeting their wage award rate. For more information on this subject, contact the CCF Victoria Team on (03) 9588 7600.

Psychosocial Hazards

Civil contractors in Victoria must manage psychosocial hazards as part of their general occupational health and safety duties. From 1 December 2025, the Occupational Health and Safety (Psychological Health) Regulations 2025 make this more explicit by requiring employers to: 

• Identify psychosocial hazards in the working environment 
• Assess the risks 
• Control the risks so far as is reasonably practicable, and 
• Review and revise controls in certain circumstances 

This work should be done with consultation, including with health and safety representatives where applicable. 

For civil construction businesses, common psychosocial hazards include, but are not limited to: 

• Fatigue management
• Long hours 
• Tight deadlines 
• High demands 
• Low control 
• Role ambiguity 
• Poor supervision 
• Bullying behaviour 
• Remote work 
• Traumatic incidents 

These hazards can affect direct employees, labour hire, and subcontractors on the same worksite, so the approach needs to cover the entire project workforce. Practical controls should focus on how work is planned and supervised, not only on individual resilience.  

HR Gurus

Running a construction business means juggling tight deadlines, complex projects, and a constantly changing workforce. HR shouldn’t be another headache. That’s where HR Gurus comes in. 

They specialise in helping businesses stay compliant, manage people effectively, and build strong, safe, high-performing teams, without unnecessary complexity. 

As part of your CCF Victoria member benefits, you also receive access to the HR Gurus Membership, which includes unlimited 15-minute HR advice calls. This gives you direct access to qualified HR professionals whenever questions arise, whether it’s award interpretation, performance issues, difficult conversations, compliance queries, or workforce planning decisions. 

What HR Gurus Do 

HR Gurus offers end-to-end HR support tailored to the realities of the construction industry, including: 

Workplace compliance & documentation 
Contracts, policies, procedures, site-specific documentation, award interpretation, and compliance audits. 

Performance management & employee relations 
Support with underperformance, misconduct, conflict resolution, and termination processes. 

Recruitment & onboarding 
Job ads, screening, interviews, onboarding packs, and role clarity for site and office roles. 

Workplace investigations 
Independent, fair, and fast investigations into bullying, harassment, safety breaches, and grievances. 

Training & leadership development 
Toolbox-friendly training, leadership coaching, and practical workshops for supervisors and site managers. 

Strategic HR & workforce planning 
Helping you scale, structure, and future-proof your workforce. 

Resources

The Fair Work Commission’s Building and Construction General On-Site Award 2020 – Click HERE 

The Building and Construction Award 2020 webpage, with assistance on who the award covers and finding your pay rate – Click HERE 

The Fair Work Ombudsman’s Pay Guide – Click HERE 

The Fair Work Ombudsman’s Pay Calculator – Click HERE 

The Fair Work Commission’s Annual Wage Review – Click HERE 

WorkSafe’s psychological health webpage – Click HERE 

Find out more

If you have any questions or require assistance, please contact the CCF Victoria Team on (03) 9588 7600. 

Members get more! Interested in becoming a member? CLICK HERE to apply.