The Fair Work Commission has handed down its Annual Wage Review 2026 decision today, increasing minimum rates of pay from 1 July 2026.
The National Minimum Wage will increase by 5.97% to:
- $26.44 per hour; and
- $1,004.90 per week based on a 38 hour full time working week.
Minimum wage rates contained in modern awards will increase by 4.75%.
Employers have a legal responsibility to ensure that all employees are paid at or above the applicable minimum rate prescribed by a modern award, enterprise agreement or the National Minimum Wage.
Employees who are paid award rates, or whose remuneration is calculated by reference to award rates, will generally require a pay increase from the first full pay period on or after 1 July 2026.
Employers should also review salary arrangements and above-award remuneration arrangements to ensure they continue to satisfy minimum award obligations following the increase.
A reminder that from 1 January 2025, the Fair Work Act introduced a criminal underpayment offence. Employers who intentionally fail to comply with minimum wage obligations may be exposed to significant penalties, including criminal prosecution in serious cases.
We recommend employers review their payroll systems, classifications, award coverage and remuneration arrangements to ensure that all increases are correctly implemented.
BlandsLaw can assist employers with reviewing award coverage, employee classifications, payroll systems and remuneration arrangements to ensure compliance with the Fair Work Act and applicable modern awards.
Should you require assistance reviewing your payroll obligations or have any questions regarding the Annual Wage Review 2026 and its impact on your business, please contact us.