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

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:

• $25.50/hr to $26.78/hr
• $969/week to $1,017/week (full-time, 38 hours)
• An extra $2,496 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.

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.

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%.

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.

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.

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