The Fair Work Commission has handed down its 2026 Annual Wage Review decision. Here is what has changed, who is affected, and the steps your business should take before 1 July 2026.
Key Figures at a Glance
| New National Minimum Wage | New Weekly Rate (38-hr week) | Workers Affected Nationally |
| $26.44 per hour
from 1 July 2026 |
$1,004.90
first time above $1,000/week |
2.7 million
approx. 21% of workforce |
What Was Announced?
On 2 June 2026, the Fair Work Commission handed down its decision from the 2026 Annual Wage Review. The National Minimum Wage will increase by approximately 6%, while modern award minimum wage rates will rise by 4.75%. Both increases take effect from the first full pay period on or after 1 July 2026 making this the first time the National Minimum Wage has exceeded $1,000 per week.
The Commission noted the decision was aimed at ensuring award-reliant workers are not worse off in real terms relative to July 2025, using the RBA’s forecast CPI of approximately 4.8% for 2025–26 as a key benchmark.
New Minimum Wage Rates from 1 July 2026
The table below summarises the new rates for employees not covered by a modern award or enterprise agreement.
| Employee Type | Until 30 June 2026 | From 1 July 2026 | Change |
| Full-time / part-time (per hour) | $24.95 | $26.44 | +5.97% |
| Full-time (per week, 38 hrs) | $948.00 | $1,004.90 | +5.97% |
| Casual employees (per hour, incl. 25% loading) | $31.19 | $33.05 | +5.97% |
| Modern award minimum wages | Varied by award | Increased by 4.75% | +4.75% |
| Lowest modern award rate (ongoing) | — | At least $1,004.90/wk or $26.44/hr | — |
| Entry-level award rate (first 6 months) | — | At least $978.10/wk or $25.74/hr | — |
Note: Award-covered employees may be entitled to additional penalty rates, allowances, and loadings on top of these base rates. Use the Fair Work Ombudsman’s Pay and Conditions Tool to confirm the correct rates for your specific award.
Who Is Affected?
Approximately 2.7 million workers – around 21% of Australia’s workforce – will benefit from this decision. These employees are predominantly female, work part-time or casual hours, and are concentrated in accommodation and food services, retail trade, administrative and support services, and health care and social assistance. Even if your business does not employ minimum wage workers directly, this decision tends to set a benchmark for broader wage expectations across the workforce.
What Should Your Business Do Now?
- Review your payroll against the updated award rates applicable to each of your employees. Use the Fair Work Ombudsman’s Pay and Conditions Tool to confirm the correct rates for your industry.
- Update payroll systems and software to reflect the new rates before the first pay period on or after 1 July 2026. Do not wait until the end of the month.
- Check any enterprise agreements your business operates under. Where agreement rates already exceed award minimums, no change may be required, but verify this carefully.
- Factor the increased labour cost into your business budgets and cash flow forecasts for the 2026–27 financial year, particularly if you are in a high-award-reliance industry.
- Communicate the change to relevant managers and HR personnel so they are aware of their obligations and can address employee questions promptly.
Important: Underpayment of wages is a serious legal matter under the Fair Work Act 2009. Employers who fail to pay the new minimum rates from the applicable date may face significant penalties.
Next Steps
If you are uncertain about which award applies to your employees, or how to calculate the correct rates including penalty rates and allowances, seek advice from a qualified payroll specialist or employment lawyer promptly.
Disclaimer
This article is for general informational purposes only and does not constitute financial, legal, or employment advice. Refer to the Fair Work Ombudsman at fairwork.gov.au for authoritative guidance on minimum wage obligations.
