The Fair Work Commission has announced an increase to the National Minimum Wage and minimum pay rates under modern awards, effective from 1 July 2026.

What has changed?

The National Minimum Wage and minimum modern award wages will increase by 4.75%.

These new rates must be applied from the first full pay period commencing on or after 1 July 2026.

Employees not covered by an award

For award-free employees, the National Minimum Wage will increase to:

• $26.44 per hour; or
• $1,004.90 per week based on a 38-hour working week.

Employees covered by a modern award or enterprise agreement

The 4.75% increase will apply to minimum award pay rates, including:

• Base rates of pay
• Overtime rates
• Penalty rates
• Relevant allowances and loadings

Please note that some entry-level classifications may be subject to separate structural adjustments.

Businesses operating under an enterprise agreement should also review their pay rates to ensure they continue to satisfy the applicable minimum award requirements.

What happens next?

At this stage, no immediate action is required.  The Fair Work Commission is currently finalising the updated pay schedules for each modern award and we expect these to become available shortly before 1 July 2026.

Employees paid above the minimum rate

If you currently pay employees above the applicable award minimums, you may not need to increase their pay rates provided their overall remuneration remains at or above the new minimum requirements.

If you have any questions regarding these changes, please contact our office.