What Changes on 1 July 2026: Pay Rise, Payday Super & 26-Week Parental Leave

A bundle of pay and entitlement changes take effect from 1 July 2026. If you're a worker, your pay and super are about to go up. If you're an employer, the way you pay super changes fundamentally. Here's the full list:

• Award and minimum wages rise — the Fair Work Commission's Annual Wage Review 2026 lifted award rates by 4.75% and the National Minimum Wage by 6%.
• New National Minimum Wage: $26.44/hr ($1,004.90 per week), up from $24.95/hr.
• Payday Super starts — employers must pay super at the same time as wages, not quarterly.
• Super is now paid on Government Paid Parental Leave at 12%.
• Paid Parental Leave rises to 26 weeks (130 days), up from 24.

All pay changes apply from the first full pay period starting on or after 1 July 2026 — not necessarily 1 July itself.

In its Annual Wage Review 2026 decision, the Fair Work Commission increased:

• The National Minimum Wage by 6% — to $26.44 per hour ($1,004.90 per 38-hour week). This covers award/agreement-free employees.
• Modern award minimum rates by 4.75% — this is what applies to most workers, since the vast majority are covered by an award.

Two floors were set for award rates: the lowest ongoing rate in any award must be at least $26.44/hr ($1,004.90/wk), and any entry-level rate for the first 6 months of employment must be at least $25.74/hr ($978.10/wk).

Check your new rate with our award pay rates tool or the minimum wage calculator.

This is the biggest change for employers. From 1 July 2026, employers must pay employees' superannuation at the same time as wages — weekly, fortnightly or monthly, matching the pay cycle. Contributions must reach the employee's super fund within seven business days of each payday.

Until now, super only had to be paid quarterly. The change means workers' super is invested sooner (and compounds for longer), and unpaid super is far easier to spot — if it's not in your fund within a week of payday, something's wrong.

For employers, this means tighter cash-flow management and payroll systems that remit super every cycle. Use our Payday Super calculator to see how it affects your pay runs.

Two changes for new parents from 1 July 2026:

• Super on Government PPL: the ATO will pay a 12% superannuation contribution on Government-funded Parental Leave Pay, directly into your nominated fund. Previously, PPL attracted no super.
• PPL extends to 26 weeks (130 days) for children born or adopted from 1 July 2026 — up from 24 weeks. The portion reserved for each parent in a couple on a "use it or lose it" basis also rises from 3 to 4 weeks.

See what you're entitled to with our parental leave calculator.

Three quick checks after 1 July 2026:

• Did your hourly rate go up? Your pay should rise from the first full pay period on or after 1 July. If it didn't change, ask payroll in writing.
• Is your super landing each pay? Log into your super fund and confirm contributions arrive within a week of each payday.
• On parental leave? Check that the 12% super contribution is being paid on your PPL.

If your pay or super hasn't been updated, the Fair Work Ombudsman can help — it's free and confidential.

Employers have a short window to get ready:

• Update pay rates in your payroll system for the first full pay period on or after 1 July (4.75% on award rates).
• Move to per-cycle super — confirm your payroll/clearing house can remit super every pay run within 7 business days.
• Review cash flow — super now leaves the business every cycle, not quarterly.
• Update parental leave processes for the 26-week entitlement and super on PPL.

Our cost of employment calculator can help you model the new wage and super costs.