Annual Wage Review 2026-27 — $26.44/hr NMW

Fair Work Commission decision [2026] FWCFB 3500 (Annual Wage Review 2025-26), handed down 2 June 2026, effective 1 July 2026.

What was the 2026-27 Annual Wage Review decision?

The Fair Work Commission's 2026-27 Annual Wage Review decision, handed down 2 June 2026 ([2026] FWCFB 3500 (Annual Wage Review 2025-26)), lifted the National Minimum Wage by 6% to $26.44/hr ($1,004.90 for a 38-hour week) and modern award minimum rates by 4.75%, effective 1 July 2026.

The increase was split: the National Minimum Wage rose 6% to $26.44/hour ($1,004.90/week) and modern award minimum rates rose 4.75%, with the lowest C13/C14 classifications structurally adjusted up to the new floor. New rates apply from the first full pay period starting on or after 1 July 2026 (with occasional 1 October 2026 deferrals for some hospitality, tourism and aviation awards).

The Panel's reasoning

• The Panel set the increases to protect the real wages of award-reliant and minimum-wage workers, ensuring they were not worse off in real terms relative to 1 July 2025.
• It split the increase — 6% for the National Minimum Wage and 4.75% for modern award rates — rather than applying a single uniform percentage.
• The lowest-paid C13 and C14 classifications received a structural adjustment, lifting them to the new National Minimum Wage floor of $26.44/hour ($1,004.90/week).
• Commentators noted the 4.75% award increase did not deliver an above-inflation 'real' wage rise across the board.

Economic context

Inflation had moderated toward the RBA's 2-3% target band through early 2026. The Panel weighs CPI, labour-market conditions, productivity, relative living standards of award-reliant employees, and submissions from the Federal Government, ACTU, ACCI, ABI and Australian Industry Group when reaching its decision.

Who decided this?

The expert panel of the Fair Work Commission, chaired by President Adam Hatcher, with Vice President Asbury, Deputy President Wright, Commissioner Hampton, plus expert panel members. The expert panel meets between March and May each year, hears submissions, and publishes its determination in early June.

What this meant for your pay

If you were paid the National Minimum Wage in 2026-27, your gross weekly pay for a 38-hour week was $1,004.90 (up from the previous $24.95/hr rate). If you were paid a modern award rate, your minimum hourly rate rose by 4.75% from the previous year.

If you were paid above the award minimum, your employer was not required to pass on the wage review increase — though many do, particularly where the award rate has now caught up to your above-award rate.

To calculate the exact impact on your pay, use the Annual Wage Review impact calculator or ask the FairWork Mate advisor about your specific award and classification.

Source

Fair Work Commission Annual Wage Review 2026-27 decision, [2026] FWCFB 3500 (Annual Wage Review 2025-26). Full decision available at fwc.gov.au/annual-wage-review.