Annual Wage Review 2026-27 Decision Explained — What It Means for Your Pay

Decision — announced 2 June 2026: The Fair Work Commission's Expert Panel has lifted the National Minimum Wage by just under 6% — from $24.95 to $26.44 per hour ($948.10 to $1,004.90 per 38-hour week). Modern Award minimum wages rise by 4.75%. The new rates take effect from the first full pay period starting on or after 1 July 2026, benefiting around 2.8 million workers on minimum and award-reliant wages.

Until your first full pay period on or after 1 July, your current rate still applies. Work out your exact new pay on the FWM AWR Impact Calculator, or check your award on the AWR Pay-Rise Lookup.

For context, the submissions to the review were:

• ACTU (unions): +5.0%
• Australian Industry Group (employers): +2.5% cap
• ACOSS (small business): +2.0%
• Australian Government: "Real wage increase consistent with sustainable growth"

The award outcome (4.75%) lands above the 5-year average decision of 4.2%, while the National Minimum Wage received a larger one-off lift toward $26.44/hr. (Source: Fair Work Commission Annual Wage Review 2026-27; Fair Work Ombudsman.)

Direct impact:

• National Minimum Wage employees (~70,000 workers, 0.7%): rate updates immediately
• Modern Award employees (~2.4 million, ~22%): all classification rates step up by 4.75% (the award increase) — separate from, and smaller than, the National Minimum Wage's near-6% lift

Indirect impact:

• Enterprise agreement employees: depends on whether the agreement benchmarks against the award. Many do.
• Above-award salaried employees: employers often re-benchmark. Your nominal salary doesn't necessarily change, but the relative cushion shrinks.

The new rate takes effect from the first full pay period starting on or after 1 July 2026. So:

• Weekly paid: usually the pay period starting Monday 7 July (or Tuesday 1 July if your pay week starts on a Tuesday)
• Fortnightly paid: usually the pay period starting in early-to-mid July
• Monthly paid: from the July monthly cycle

If you're paid for hours worked across the boundary, the OLD rate applies to hours worked before 1 July (or before your first new pay period), and the NEW rate applies after.

Your first July payslip should clearly show the new rate. If it doesn't, you have an underpayment from day one — see the next section.

Step 1 — Ask politely. Mistakes happen, especially in payroll systems that don't auto-update. Email or talk to payroll referencing the new National Minimum Wage / award rate and the date it takes effect.

Step 2 — If they decline or don't fix it within a reasonable time, calculate the back-pay owing. Use the FWM Back Pay Calculator. Even small per-hour shortfalls add up across the financial year.

Step 3 — Send a written request for back-pay. Use the FWM Underpayment Enquiry Letter generator for a hedged, professional letter that asks for confirmation without escalating.

Step 4 — If still unresolved, lodge a complaint with the Fair Work Ombudsman (13 13 94 or fairwork.gov.au). FWO can investigate, recover wages, and seek civil penalties up to $109,200 per contravention for a company with fewer than 15 employees, or $546,000 for one with 15 or more.

You have 6 years to claim back-pay under section 544 of the Fair Work Act 2009.

Use the FWM Annual Wage Review Impact Calculator to see your exact new hourly, weekly, fortnightly, and annual pay. Enter your current rate and this year's decision: +4.75% for Modern Award rates (or the National Minimum Wage's larger lift to $26.44/hr).

For a quick estimate: multiply your current hourly rate by 1.0475 (the 4.75% award increase). E.g. $30/hr → $30 × 1.0475 = $31.43/hr. Over a 38-hour week × 52 weeks, that's an extra ~$2,820 per year before tax.

If you're paid a casual loading (25%), the loading is calculated on the new base. So a casual on $30/hr base + 25% loading = $37.50/hr currently. After the 4.75% increase: $31.43 base × 1.25 = $39.28/hr.