Minimum Wage 2026 Australia — New Rate from 1 July (What You Need to Know)
What is the minimum wage in Australia for 2026-27? Learn the new rate from 1 July 2026, how it affects casuals, award rates, and what to do if your employer does not increase your pay.
The current national minimum wage (2025-26)
The current national minimum wage is $24.10 per hour or $915.90 per week for a full-time employee working 38 ordinary hours. This rate took effect on 1 July 2025 following the Fair Work Commission's Annual Wage Review 2024-25 decision, which delivered a 3.75% increase from the previous rate of $23.23 per hour. The national minimum wage is the absolute floor — no employee in Australia can legally be paid less than this amount (unless they are a junior employee, apprentice, or supported wage system employee with a permitted lower rate). However, most Australian workers are covered by a modern award or enterprise agreement that sets higher minimum rates than the national minimum wage. Only about 0.7% of employees are actually paid the national minimum wage — but it functions as the baseline that influences all other wage rates in the economy. For casual employees, the 25% casual loading is applied on top of the minimum rate, bringing the casual minimum to $30.13 per hour. This loading compensates for the absence of paid leave and other entitlements.
FWC Annual Wage Review 2026 — timeline and what to expect
The Fair Work Commission conducts an Annual Wage Review every year that sets the new national minimum wage and adjusts all modern award minimum rates. The 2025-26 Annual Wage Review is expected to follow this timeline: submissions open in March 2026, hearings take place in April-May 2026, the decision is handed down in June 2026, and the new rate takes effect from the first full pay period on or after 1 July 2026. The FWC considers several factors including the performance and competitiveness of the national economy, productivity, the cost of living (inflation), the needs of the low-paid, the principle of equal remuneration for work of equal value, and the impact on employment growth and business viability. Based on current economic conditions — inflation tracking at approximately 3.2%, unemployment at 4.1%, and moderate GDP growth — economists are projecting an increase in the range of 3.0% to 4.0% for the 2026-27 year. A 3.5% increase would bring the minimum wage to approximately $24.94 per hour or $948.00 per week. The actual figure will depend on economic data available at the time of the decision.
How the minimum wage increase affects casual workers
Casual employees receive the minimum wage plus a 25% casual loading, which compensates for the lack of paid annual leave, personal leave, redundancy pay, and notice of termination. When the minimum wage increases, the casual rate increases proportionally. At the current rate of $24.10 per hour, the casual minimum is $30.13 per hour. If the minimum wage increases to approximately $24.94, the casual minimum would rise to approximately $31.18 per hour. This casual loading is applied to the base rate — not to penalty rates. So if a casual worker is entitled to a Saturday penalty rate of 125% of the base, the calculation is: base rate x 1.25 x 1.25 (casual loading). However, under some awards, the casual loading is built into the penalty rate calculation differently — check your specific award for the correct method. It is also important to note that casual employees who have been employed for 12 months on a regular and systematic basis have the right to request conversion to permanent employment under the Fair Work Act. If converted, they would lose the 25% loading but gain access to paid leave, notice of termination, and redundancy entitlements.
Award rates that flow from the minimum wage decision
The Annual Wage Review does not only set the national minimum wage — it also adjusts all minimum rates in the 121 modern awards covering the vast majority of Australian workers. When the FWC announces a percentage increase, that percentage is typically applied to all adult award classification rates. This means if you are covered by an award — such as the General Retail Industry Award, the Restaurant Industry Award, the Clerks-Private Sector Award, or any other modern award — your minimum rate will increase by the same percentage as the national minimum wage increase. However, some Annual Wage Reviews have applied different increases to different award levels or implemented phased increases. The 2020 review during COVID-19, for example, staggered increases across different award groups. To find your specific award rate after the increase, visit the Fair Work Ombudsman's Pay Calculator at calculate.fairwork.gov.au, select your award, classification level, and employment type. Your award rate is the minimum your employer must pay — many workers are paid above-award rates, but the award minimum still applies as a floor. If you are on a salary that was designed to absorb all award entitlements, check that your annualised salary still exceeds the updated award rate plus all applicable penalties and loadings.
How to check if you are getting the new minimum wage rate
After the new rate takes effect on 1 July, you should verify your pay has been updated. Check your first payslip after 1 July 2026 to confirm the new rate. The increase should apply from the first full pay period on or after 1 July — not from 1 July itself. So if your pay period runs Monday to Sunday and 1 July falls on a Wednesday, the new rate applies from the following Monday. To check your entitlement, identify whether you are covered by a modern award (check your employment contract or ask your employer), then look up your classification level in the award, find the updated minimum rate on the Fair Work Ombudsman website (fairwork.gov.au/pay), and compare it to the hourly rate on your payslip. For salaried employees covered by an award, you need to check that your annualised salary still satisfies the award. Calculate the total annual value of all minimum award entitlements (base rate for 38 hours, overtime, penalty rates, allowances, leave loading) and compare it to your salary. If your salary has fallen below this total, your employer must increase it. Keep records of your payslips showing the old and new rates to confirm the change has been applied.
What to do if your employer does not increase your pay
If your employer fails to implement the minimum wage increase after 1 July, they are underpaying you in breach of the Fair Work Act. This is not a grey area — failing to pay the minimum wage is a contravention that can attract penalties. Here is what to do. First, raise it with your employer or payroll department in writing. It may be an oversight, especially for small businesses. Send an email referencing the Annual Wage Review decision and asking when the new rate will be applied. Second, if the employer does not respond or refuses to increase your pay, contact the Fair Work Ombudsman on 13 13 94 or lodge an online enquiry at fairwork.gov.au. The FWO can investigate and compel compliance. Third, you can recover underpaid wages going back up to 6 years. Calculate the shortfall for each pay period where you were underpaid and lodge a claim. Fourth, since 1 January 2025, intentional wage underpayment is a criminal offence carrying penalties of up to 10 years imprisonment for individuals and substantial fines for corporations. This applies to deliberate and systematic underpayment — not honest mistakes. The FWO refers serious cases to the Commonwealth Director of Public Prosecutions. Most employers will correct the issue once made aware of their obligation. Use our Minimum Wage Calculator to check what you should be receiving.
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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.
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