2026 Award Minimum Rates Increases | What You Need to Know

This morning, the Fair Work Commission (FWC) announced its decision regarding the increases for the National Minimum Wage. Here’s what you need to know

Award Wage Increases from 1 July 2026

The National Minimum Wage and Modern Awards will increase by 4.75 %, which is $1,004.90 per week or $26.44 per hour.  This percentage increase will be applied to the minimum wages outlined in modern awards and will take effect on the first full pay period on or after 1 July 2026.

There will be an additional increase to the lowest levels of the Award system which will be phased in over three stages. This is aimed at trying to close the real wage gap, being the difference between increases, for the lowest paid workers under Awards, estimated to affect around 100,000 of the lowest paid employees.

In making their determination, the Fair Work Commission largely considered cost of living pressures for low paid workers, the demographics of Award reliant workers, the unusual level of complexity in the factors that the Fair Work Commission must take into account due to global financial instability, the Reserve Bank of Australia’s forecast of headline inflation, and the goal to close the gap between wage growth and inflation.

The 4.75 % increase is much higher than the 3.5% increase seen in 2025. In its decision, the Commission noted that over the past four years, employees relying on modern award minimum wages and the National Minimum Wage had not received a real value in their wage rates when compared to inflation since the pandemic.

Click here to view the Fair Work Commission’s full determination.

Payday Superannuation from 1 July 2026

With the minimum wage increase announcement, it is a good time to also be reminded that how compulsory superannuation contributions get paid is about experience the most significant change in years.
From 1 July 2026 you must:

• pay employees their super guarantee on each payday (instead of quarterly)
• calculate super based on an employee's qualifying earnings, which is a new term that brings together ordinary time earnings and other payments.

This does not increase the percentage used to calculate the guarantee (which is still 12%). If they haven’t already, employers are urged to review payroll systems and super processes to be prepared to pay the compulsory contribution more frequently.
For further information, please click here.

Next Steps

Employers should ensure employees paid per a Modern Award or the National Minimum Wage receive the appropriate pay increase by the relevant effective date. 
Employers who don't pay exactly against the Award terms, such as paying a higher than award rate through an annualised salary or flat rate should ensure their arrangements still meet obligations under the relevant Award/minimum wage after the increases apply. Employers paying per an enterprise agreement should ensure the base rates under the agreement are not lower than new Modern Award rates. 

It is important to review employees' current rates of pay before 1 July to ensure compliance with the changes and maintain business compliance. 

Changes to minimum conditions is a great time to ensure your compliance with your employer obligations, which have become more important than ever given the criminalisation of wage theft commencing on 1 January 2025.

Should you require any assistance completing your review or implementing these changes, Skildare can help.