The Fair Work Commission has announced a 4.75% increase to the National Minimum Wage and minimum rates of pay across all modern awards.

The increase will apply from the first full pay period on or after 1 July 2026. Businesses employing staff under a modern award should be aware that the increase applies not only to base rates of pay, but also to overtime rates, penalty rates, and a range of allowances and loadings.

For award-free employees, the National Minimum Wage will increase to $26.44 per hour, or $1,004.90 per week based on a 38-hour week.

While updated award pay guides are still being finalised, employers should begin considering how the increase may affect their workforce and payroll arrangements. Businesses that currently pay above-award rates may be able to absorb the increase, provided employees continue to receive at least the applicable minimum entitlements.

NTCA members are encouraged to review their employment arrangements and seek professional advice if they are unsure how the changes apply to their business. Updated award rates are expected to be released shortly before 1 July.

 

Further information is available from the Fair Work Commission and Fair Work Ombudsman, or through your employment relations adviser.