The Fair Work Commission (FWC) has handed down its 2026 Annual Wage Review decision, confirming a 4.75% increase to the National Minimum Wage and modern award minimum wages from 1 July 2026.
The decision will affect approximately 2.8 million Australian workers and marks a significant milestone, with the National Minimum Wage exceeding $1,000 per week for the first time.
New Minimum Wage Rates from 1 July 2026
| Rate | Current | New Rate |
| Hourly | $24.95 | $26.44 |
| Weekly (38 hours) | $948.00 | $1,004.90 |
| Annual Equivalent | $49,296.00 | $52,254.80 |
In addition, some of Australia’s lowest-paid workers will receive increases of up to 6% due to structural adjustments to certain award classifications.
Why Did the FWC Increase Wages?
- The FWC described this year’s review as particularly challenging, balancing cost-of-living pressures against broader economic concerns.
- While inflation has eased from previous highs, many Australian workers continue to face rising costs for housing, groceries and essential services. At the same time, employers are dealing with increasing operating expenses, rising interest rates, and a softer labour market.
- The Commission determined that a 4.75% increase would provide meaningful wage growth for low-paid workers while helping avoid additional inflationary pressure on the economy.
What Does This Mean for Employers?
Businesses covered by modern awards must ensure that updated pay rates are applied from the first full pay period on or after 1 July 2026.
Employers should take this opportunity to:
- Review employee award classifications
- Update payroll systems and wage schedules
- Check employment contracts and remuneration arrangements
- Ensure compliance with minimum wage obligations
Failure to pay the correct award rates can expose businesses to underpayment claims, penalties and back-pay liabilities.
What Does This Mean for Employees?
Employees who are paid under modern awards or receive the National Minimum Wage should see an increase in their pay from July 2026.
Workers who are unsure whether they are being paid correctly should review their award classification and seek advice if they have concerns about their wages or entitlements.
How NB Employment Law Can Help
The 2026 minimum wage increase serves as an important reminder for employers to review workplace compliance obligations and ensure employees are receiving their correct entitlements.
NB Employment Law assists businesses and employees with award interpretation, wage compliance, employment contracts, workplace disputes and Fair Work matters.
If you are unsure how the new wage rates affect your business or employment rights, contact NB Employment Law for tailored legal advice.