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ACTU Wants a 5% Pay Rise — What the 2026 Wage Review Means for Your Pay

|2 min read

The ACTU has asked for a 5% minimum wage increase to $26.19/hr. Here's when the decision happens, who's affected, and what it means for your take-home pay.

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DN

Payroll & Compliance Editor · Registered BAS Agent, Cert IV Accounting & Bookkeeping

What is the ACTU asking for?

The Australian Council of Trade Unions (ACTU) has filed its submission to the Fair Work Commission's 2026-27 Annual Wage Review, calling for a 5% increase to minimum and award wages.

In dollar terms, that would lift the national minimum wage from:

  • $24.95/hr to $26.20/hr
  • $948/week to $995/week (full-time, 38 hours)
  • An extra $2,444 per year before tax

The claim directly affects nearly 2.7 million Australian workers whose pay is set by modern awards — roughly one in four workers.

Why is the ACTU pushing for 5%?

The core argument: workers are going backwards. Annual wage growth is sitting at 3.4%, but inflation is running at 3.8%. In real terms, most award workers are earning less than they were a year ago.

The ACTU argues that a 5% increase would:

  • Restore real purchasing power for low-paid workers
  • Keep up with rising costs of housing, food, and fuel
  • Reduce reliance on government support payments

The Albanese Government's own submission supports an above-inflation increase, though it hasn't endorsed the 5% figure specifically.

What are employers saying?

The Australian Industry Group (AIG) filed its counter-submission on 27 March 2026, arguing for a more modest increase. Their position:

  • Global economic uncertainty (tariffs, trade disruption) means businesses need caution
  • A 5% increase would push up costs and could lead to job losses in small business
  • Wage increases should be tied to productivity growth, which has been flat

In practice, the FWC usually lands somewhere between the union and employer positions. Last year's increase was 3.5%.

When will the decision be made?

The Annual Wage Review follows the same timeline every year:

  • March: Written submissions filed (done)
  • April-May: Oral hearings before the FWC Expert Panel
  • Early June: Decision handed down
  • 1 July: New rates take effect from the first full pay period on or after this date

So you'll know your new rate by mid-June, and it'll hit your payslip from early-to-mid July.

How much extra would you take home on a 5% increase?

If the full 5% is granted, here's what different workers would see:

  • Minimum wage full-time: extra $48/week gross → ~$39/week after tax
  • Retail Award Level 3 ($27.50/hr): extra $52/week gross → ~$42/week after tax
  • Hospitality Award Level 2 ($26.80/hr): extra $51/week gross → ~$41/week after tax

Use our take-home pay calculator to see exactly what a 5% increase would mean for your specific situation — including tax, super, and HECS.

What should you do right now?

While you wait for the decision:

  • Check you're being paid correctly now: Use our minimum wage calculator to verify your current rate
  • Know your award: The increase applies to award minimums — if you're already paid above, you may not see a change
  • Budget for July: Any increase takes effect from the first full pay period on or after 1 July
  • Follow our wage review decision tracker — we'll update it as soon as the FWC announces

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FairWork Mate is an independent commercial service. We are not affiliated with, endorsed by, or associated with the Fair Work Ombudsman, the Fair Work Commission, or any Australian Government agency. Content is general information and estimates only — not legal, financial, or tax advice. Always verify with the Fair Work Ombudsman (13 13 94) or a qualified professional.

DN
About Daniel Nguyen

Six years running payroll for a Western Sydney commercial builder before moving to compliance writing and contract payroll. Registered BAS Agent (TPB). Cert IV in Accounting and Bookkeeping. Writes about pay calculations, superannuation, and the 2026 Payday Super rollout. Based in Cabramatta, Sydney.

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