Annual Wage Review 2026-27: FWC Lifts Minimum Wage 6% to $26.44 From 1 July 2026

The Fair Work Commission handed down its Annual Wage Review 2026-27 decision at 10am AEST on Tuesday 2 June 2026. The headline numbers:

• National Minimum Wage rises 6% to $26.44 per hour ($1,004.90 per 38-hour week) — the first time the NMW has passed $1,000 a week — from 1 July 2026.
• All Modern Award minimum wage rates rise 4.75% from the same date, with a structural adjustment lifting the lowest-paid (C13 and C14) classifications up to the new floor.
• The decision delivers a pay rise to roughly 2.7 million Australian workers paid at the National Minimum Wage or under a Modern Award.

The new rates apply from the first full pay period starting on or after 1 July 2026 — not necessarily 1 July itself if your pay cycle straddles the date.

Check your award's new rate with the FWM Pay Rates tool, or the Minimum Wage Calculator for the National Minimum Wage.

Source: Fair Work Commission — Annual Wage Review 2026 decision announced (2 June 2026).

The FWC Expert Panel, chaired by the President, delivered its decision on 2 June 2026 after hearing submissions from the ACTU, the Australian Government, and major employer bodies including the Australian Chamber of Commerce and Industry, the Council of Small Business Organisations Australia, and the Business Council of Australia.

The Panel split the increase this year:

• The National Minimum Wage rose 6%.
• Modern Award minimum rates rose 4.75%, subject to a structural adjustment to the lowest classifications (those paid at the C13 and C14 wage rates), which are lifted to the new National Minimum Wage floor of $1,004.90/week ($26.44/hour).

The Panel's stated aim was to ensure award-reliant workers are not worse off in real terms relative to 1 July 2025, while weighing inflation, wage growth, productivity and business conditions. Commentators noted the award increase did not deliver a "real wage" rise above inflation across the board.

Source: Fair Work Ombudsman — Minimum wages increase from 1 July 2026.

	Now (until 1 July 2026)	From 1 July 2026	Increase
Hourly	$24.95	$26.44	+$1.49 (6%)
Weekly (38h)	$948.00	$1,004.90	+$56.90
Annual (38h × 52)	$49,301	$52,255	+$2,954

The NMW applies to any worker not covered by a Modern Award or enterprise agreement. For everyone else, your relevant award minimum rate sets the floor — and that rises 4.75% on the same day (or lifts to the $26.44/hour floor if your classification sits below it).

The entry-level rate that applies to the first 6 months of employment in some awards rises to $25.74 per hour ($978.10 per week). Junior, apprentice, trainee, and supported wage rates also rise proportionally — see the FWC pay guides published alongside the decision.

The 4.75% rise applies across all Modern Award classifications, but two things change the exact figure for the lowest-paid:

• The new floor. No ongoing-employment classification can sit below $1,004.90/week ($26.44/hour). Classifications that would land below that after 4.75% (the C13 and C14 rates) are lifted to the floor instead — so some of the lowest rates rise by more than 4.75%.
• Penalty rates, allowances, casual loading and overtime rise automatically — they're calculated as a percentage of the new base rate.

Rather than publish estimates, we update each award's exact new rate from the official FWC pay guides. Check yours here once your award is confirmed for 2026-27:

• Pay Rates tool — your exact award classification rate
• Penalty Rates calculator — weekend, public holiday and overtime loadings on the new base
• Award Finder — not sure which award covers you?

The wage decision is one of three changes hitting your pay packet on the same day:

1. Minimum and award wages rise (6% NMW / 4.75% awards) — if you're on the NMW or an award.
2. The 16% income tax rate drops to 15% on the $18,201–$45,000 band from 1 July 2026 — worth up to $268 a year in extra take-home pay for every taxpayer (legislated under the Treasury Laws Amendment (Cost of Living Tax Cuts) Act 2024). It falls again to 14% from 1 July 2027.
3. Payday Super begins — employers must pay your super at the same time as wages, not quarterly.

For a full-time worker on the National Minimum Wage (gross ~$49,301 in 2025-26), the combined effect from 1 July 2026 is roughly:

• Pay rise: about +$2,954/year gross
• Tax cut: about +$268/year in take-home pay

Model your exact figures:

→ Take-home pay calculator

See also: Federal Budget 2026-27 — what it means for your pay.

Employers paying workers at the National Minimum Wage or any Modern Award rate must:

1. Update payroll rates by 1 July 2026. The new rates apply from the first full pay period that starts on or after 1 July 2026 — not from 1 July itself if your pay cycle straddles the date.
2. Issue pay slips reflecting the higher base rate. Under s535 of the Fair Work Act, pay records must be kept for 7 years.
3. Adjust penalty rates, allowances, and overtime — these flow automatically from the new base rate.
4. Tell your staff. There's no formal requirement to give written notice of the increase, but it's best practice.

Underpaying the new minimum is a civil remedy provision under the Fair Work Act, with penalties up to $109,200 per contravention for a body corporate (small business employer; $546,000 for a body corporate with 15 or more employees) ($21,840 for an individual) and far higher maximums for serious contraventions — plus back-pay. Intentional underpayment can also be a criminal offence under the wage-theft laws in force since 1 January 2025. The Fair Work Ombudsman runs proactive compliance checks after each wage review — see Fair Work Ombudsman — minimum wages.

• Fair Work Commission — Annual Wage Review 2026 decision announced (2 June 2026)
• Fair Work Ombudsman — Minimum wages increase from 1 July 2026
• Fair Work Ombudsman — minimum wages
• FWM — Federal Budget 2026-27 tax explainer

Decision handed down 2 June 2026. Rates apply from the first full pay period starting on or after 1 July 2026. Last verified 16 June 2026.