Increase to Minimum Pay Rates - Effective 1 July 2026

A Caday Workplace Relations Guide

📌 What Employers Need to Know from the 2026 Annual Wage Review

The Fair Work Commission has handed down its 2026 Annual Wage Review decision, confirming increases to both the National Minimum Wage and minimum award wages. These changes take effect from the first full pay period starting on or after 1 July 2026.

Below is a clear breakdown to help employers prepare and ensure payroll compliance ahead of the new financial year.

💰 National Minimum Wage Increase

The National Minimum Wage applies to employees not covered by an award. An Award (or Modern Award) set out minimum pay and conditions for specific industries and occupations.

From 1 July 2026, the National Minimum Wage will increase to:

• $1004.90 per week, or

• $26.44 per hour

This rate applies from the first full pay period on or after 1 July 2026.

📄 Minimum Award Wages

Most Australian employees are covered by an award. These awards set out minimum pay rates and employment conditions for particular industries or occupations.

The Commission has announced a 4.75% increase to minimum award wages, subject to the following minimum thresholds:

• The lowest ongoing employment rate in any award must be at least $1004.90 per week or $26.44 per hour

• Any entry‑level rate applying to the first 6 months (or less) of employment must be at least $978.10 per week or $25.74 per hour

These increases also apply from the first full pay period starting on or after 1 July 2026.

✔️ What Employers Should Do Now

To stay compliant, employers should:

• Review payroll systems to ensure new rates are applied correctly

• Confirm which employees are award‑covered and check the updated minimums

• Update employment contracts where minimum rates are referenced

• Communicate changes to employees ahead of July

• Ensure budgeting and forecasting reflect increased labour costs

🧭 Need Support Navigating These Changes?

Caday Workplace Relations can help you:

• Interpret award obligations

• Review employee classifications

• Update employment contracts

• Ensure your business remains compliant with the 2026 wage increases