The Fair Work Commission has handed down its 2026 Annual Wage Review decision, confirming a 4.75% increase to Modern Award minimum wage rates from 1 July 2026.
Key announcements
- The National Minimum Wage will increase to $26.44 per hour ($1,004.90 per week)
- The lowest ongoing classification in any Modern Award must be at least $1,004.90 per week.
- Entry-level rates applying during the first six months of employment must be at least $978.10 per week ($25.74 per hour).
Background
- Two special national minimum wages for award/agreement-free employees with a disability: for employees whose productivity is not affected, a minimum wage of $1004.90 per week or $26.44 per hour based on a 38-hour week, and for employees whose productivity is affected, an assessment under the Supported Wage System (SWS), subject to a minimum payment fixed under Schedule A to the order.
- Wages provisions for award/agreement-free junior employees based on the percentages for juniors in the Miscellaneous Award 2020 applied to the national minimum wage.
- The apprentice wage provisions and the National Training Wage Schedule in the Miscellaneous Award 2020 for award/agreement-free employees to whom training arrangements apply, incorporated by reference; and
- Casual loading of 25% for award/agreement-free employees.
The Commission has also announced a structural adjustment to the lowest-paid classifications in the modern award system, beginning the phased removal of the C13 classification and increasing rates for approximately 100,000 of Australia’s lowest-paid workers.
Background to Review Decision
FWC President, Justice Hatcher, shared, “Last year’s Review, which involved a real wage increase, narrowed the real wage gap to a significant degree when it took effect on 1 July 2025. However, the accelerated rate of inflation since then has substantially opened up that gap yet again. The RBA forecasts that the headline rate of inflation for the year to June 2026 will be 4.8 per cent, such that it would take a wage rate increase of well over 5 per cent to now close the gap.
Taking into account all of these matters, we have concluded, regrettably, that it would not be practicable or responsible in the current uncertain circumstances to award a real wage increase for employees reliant on modern award wage rates that would be sufficient to close the real wage gap entirely.
However, we consider that we should at least ensure that modern award reliant employees generally are not worse off in real terms than they were as at 1 July 2025, and that we should also take additional measures to protect the position of the very lowest-paid workers under modern awards.”
The full review decision is now accessible on the Fair Work Commission website.
What this means for Members
You should begin reviewing workforce budgets, payroll settings and employment costs ahead of implementation from the first full pay period on or after 1 July 2026.
Updated Pay Tables Coming Soon
The Fair Work Ombudsman will release updated award pay tables in the lead-up to 1 July. As soon as they are available, Amplify Alliance will prepare and publish updated Pay Tables and notify Members when they are ready to download from the Member Portal.
Member Support Available
Our Workplace Relations team are continuing to monitor developments and provide further guidance as required.
If you have any questions, please contact our Workplace Relations team.
