2026 Annual Wage Review – Modern Award Wages and National Minimum Wage

Once again, in accordance with section 285 of the Fair Work Act 2009 (Cth), the Fair Work Commission (FWC) has conducted the annual wage review which has resulted in an increase to the National Minimum Wage and modern minimum award wages from the first full pay period starting 1 July 2026.  The increases are as follows:

• The National Minimum Wage will increase by about 6%; and
• The modern minimum award wages will increase by 4.75%.

National Minimum Wage
The National Minimum Wage covers employees whose employment is not governed by a modern award or enterprise agreement.  The 6% increase results in the following:

• rate per hour up from $24.95 to $26.44 per hour;
• rate per 38 hour week up from $948.00 to $1,004.90; and
• rate per annum up from $49,296.00 to $52,254.80.

The casual loading (a loading applied to the rate of pay for casual employees) for modern award/agreement-free employees will remain at 25%.
 
Minimum award wages 
Award rates will increase by 4.75% from the first pay period after 1 July 2026.  The increase applies to all award classifications. 
 
How do Employers ensure they apply these changes correctly?
Employers should ensure:

1. roles are correctly classified;
2. review the Pay Guide for the relevant award and ensure the minimum pay for the classification is being paid to the employee who holds the role; and
3. notify the employee in writing that the award rate has increased and the award rate they will now receive in accordance with the award.

Employers do not need to increase wages if the employee is being paid above the increased award rate.
 
Need Assistance?
Nicole Dunn Lawyers are experts in employment law.  If you have any questions about the award rate increase or any other employment law matter, we are here to help. 

Please contact us on 1300 727 147 or by email at office@ndlaw.com.au.

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Disclaimer: This publication has been provided for general guidance only and does not constitute professional legal advice. You should obtain professional legal advice before acting on information contained in this article.