The Annual Wage Review Decision Is Out - Minimum Wages Are Increasing
Each financial year, an Expert Panel of the Fair Work Commission reviews and sets minimum wages for employees. The Expert Panel has today announced its 2026 Annual Wage Review decision.
Here are the details you need to know.
Modern Award Wages
Modern Award wage rates will increase by 4.75%, effective from 1 July 2026. However, this is subject to adjustments they have decided to make to the very lowest-paid classifications in Modern Awards.
The adjustments will result in:
- The lowest wage rate in the Modern Award system applicable to ongoing employment being $1004.90 per week or $26.44 per hour; and
- The lowest wage rate applicable to entry-level employment for a period of no more than six months being $978.10 per week or $25.74 per hour.
National Minimum Wage
The National Minimum Wage will be increased to $26.44 per hour or $1004.90 per week, effective from 1 July 2026. Previously this was $24.95 per hour or $948.00 per week.
What do employers need to do?
Employers should review their payroll and remuneration arrangements to ensure compliance with the new minimum wage rates when they take effect.
To avoid underpaying employees, employers must ensure that their employees covered by a Modern Award are paid at least the minimum rates prescribed by that Modern Award, even where an enterprise agreement applies to them. Employees who are not covered by a Modern Award or an enterprise agreement, must be paid at least the National Minimum Wage.
Where can I read more?
You can read the announcement made by the Expert Panel (including the reasons for the decision) here.
Need Assistance?
If you are unsure how the wage increases may affect your business and want to ensure you are paying your employees correctly, please get in touch with our experienced employment and industrial relations team.
