The Fair Work Commission has announced significant wage changes which take effect from 1 July 2026. These changes impact both the national minimum wage and modern award wages and every employer needs to be prepared.
From 1 July:
- The national minimum wage will increase to $1,004.90 per week or $26.44 per hour
- The minimum award wage will increase by 4.75%.
These adjustments are designed to support cost of living pressures, but they also create compliance obligations for employers.
What does your business need to do?
If you employ staff who are covered by a modern award, you will need to ensure that every employee is paid at least the new legal minimum. This includes paying:
✔️ Minimum hourly rates
✔️ Applicable allowances
✔️ Overtime rates
✔️ Penalty rates
Failing to meet these requirements can result in underpayments, breaches of the Fair Work Act and potential regulatory action. Now is the time to review your payroll and rostering practices and your employment contracts to ensure full compliance.
Where can you find the updated minimum rates?
The minimum rates of pay can be calculated using the Fair Work Ombudsman’s Pay and Conditions Tool here: https://calculate.fairwork.gov.au/