Australia: Minimum Wage Increases and Other Important Changes from 1 July 2026
Authors: Amy Zhang and Simone Gangal
On 2 June 2026, the Fair Work Commission handed down its Annual Wage Review 2026 decision.
From the first full pay period on or after 1 July 2026, the National Minimum Wage will increase from $948.00 to $1,004.90 per week ($24.95 to $26.44 per hour), and minimum rates under modern awards will increase by 4.75%. Around 2.8 million employees are directly affected.
The decision also delivers a larger increase for the lowest paid. The Commission has begun phasing out the C13 classification (currently the lowest rate for ongoing employment) so that, from 1 July 2026, the lowest ongoing award rate will be at least $1,004.90 per week ($26.44 per hour) and the lowest entry-level rate (for no more than the first six months of employment) will be at least $978.10 per week ($25.74 per hour).
Separately, gender pay equity related increases in a number of awards and a phase-out of junior rates under the Retail, Fast Food and Pharmacy awards will continue to be rolled out over the next few years.
By way of reminder, same day super requirements also commence from 1 July 2026, meaning superannuation will need to be paid at the same time as wages.
Key Takeaways for Employers
- Review pay rates so that all employees receive at least the new minimum rates from their first full pay period on or after 1 July 2026.
- Check annualised and above-award salaries to confirm they still absorb the new minimum rates.
- Check superannuation payment processes to ensure payment timing is amended to reflect the new requirements.
- Act early, as underpayment of wages can attract significant penalties.
If you require legal advice or assistance, please contact our Harmers team at + 61 2 9267 4322.
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