4.75% Award Rate Increase
The Fair Work Commission has announced a 4.75% increase to modern award rates, alongside a 6% increase to the National Minimum Wage.
From 1 July 2026, the National Minimum Wage will increase to:
- $26.44 per hour
- $1,004.90 per week (for full-time employees)
These changes will apply from the first full pay period on or after 1 July 2026.
For example, if your payroll runs Monday to Sunday, the new rates will take effect from Monday 6 July 2026.
What this means for employers
The lowest rate in any modern award for permanent full-time employees must now be at least:
- $1,004.90 per week
- $26.44 per hour (pro-rata for part-time employees)
In addition, any entry-level rates that apply for the first 6 months (or less) of employment must be at least:
- $978.10 per week
- $25.74 per hour
Why the increase?
The Fair Work Commission noted that award wages have not kept pace with the rise in inflation since July 2021.
Despite inflation easing, the real value of wages remains lower, creating a gap between CPI increases and award wages.
Based on forecasts from the Reserve Bank of Australia, inflation is expected to reach 4.8% for the year to June 2026.
While a higher increase may have closed this gap more quickly, the Commission determined that a more moderate increase was appropriate given current economic conditions.
The aim is to ensure employees relying on award wages do not fall behind in real terms, while balancing the ongoing uncertainty faced by businesses.
The full decision can be reviewed here – Annual Wage Review 2026 – Announcement of Decision
What about salaried employees?
For employees paid above award rates (e.g. on annual salaries), this increase can generally be absorbed.
However, it’s important to review:
- Allowances under the relevant award
- Overtime and penalty assumptions
- The inclusion of 17.5% leave loading
Employers must ensure that employees remain better off overall under any salary arrangement.
We’re here to help
Understanding how these changes impact your business can be complex — especially when multiple awards or pay structures are involved.
If you need support, we can assist with:
- Award reviews and compliance checks
- Salary benchmarking and market insights
- Workforce planning and cost forecasting
📞 Ph: 07 5507 7759
📧 Email: info@humanresourcing.com.au