If I'm already paid above the award, do I still get the 1 July pay rise?

Not automatically. The Annual Wage Review increase raises the MINIMUM you can be paid — from 1 July 2026 the National Minimum Wage is $26.44/hour and modern award minimum wages rose 4.75%. If you're already paid above the new minimum for your classification, the law does not require your employer to add the percentage increase on top: an over-award (above-award) payment can lawfully absorb the increase. The exception is if your contract, enterprise agreement or workplace policy says pay rises are paid IN ADDITION to award increases — then it must be added on top. Source: Fair Work Ombudsman, Annual Wage Review 2026 (fairwork.gov.au).

I'm a qualified hairdresser paid $30 an hour — will my pay go up on 1 July 2026?

Only if $30/hour is below your new award minimum, or your contract promises rises on top. The Hair and Beauty award minimum for a qualified hairdresser is well under $30/hour even after the 4.75% increase, so $30 is an over-award rate — your employer can lawfully keep you on $30 and let the increase be absorbed. Your buffer above the minimum just gets a bit smaller. If your written agreement says increases are additional, then the award increase is added to your $30 rate. Enter your exact rate and award classification above to see which applies to you.

Can my employer cut my pay because I'm still above the award rate?

Generally no. Your employer can choose not to pass on the annual increase (absorbing it into your over-award pay), but they can't unilaterally reduce your agreed rate — a pay cut normally needs your agreement or a lawful basis. They also can never pay you below the new minimum: employees can't be paid less than their applicable minimum wage, even if they agree to it. So if a cut would take you under $26.44/hour (or your higher award minimum), it's unlawful. Source: Fair Work Ombudsman, Minimum wages fact sheet (fairwork.gov.au).

My rate is now below the new award minimum — what am I owed?

You must be brought up to at least the new minimum from your first FULL pay period on or after 1 July 2026. The shortfall (new minimum minus your current rate, times your hours) is backpay your employer owes from that date. Underpayments can be recovered for up to 6 years under the Fair Work Act. Confirm the amount with the Underpaid Check tool, raise it in writing with the Underpayment Enquiry Letter tool, and if it isn't resolved, contact the Fair Work Ombudsman on 13 13 94.

I'm on an annualised salary above the award — does absorption still apply?

Being above the hourly minimum isn't the whole test for an annualised salary. Your annualised wage must not be less than what you'd have earned under the award — including the higher minimum rate plus penalties, overtime and loadings — for the hours you actually work. Employers must reconcile annualised wages against the award (typically yearly), and a 4.75% higher award minimum can push the award-equivalent above your salary, creating a top-up obligation. Absorption of the headline increase can be lawful, but only if the reconciliation still comes out in your favour. Source: Fair Work Ombudsman, Annualised wages and salaries (fairwork.gov.au).

Do I Get the Pay Rise If I'm Paid Above the Award?

The 1 July increase raises the minimum. If you're already paid above it, the rise doesn't have to be added on top — it can be lawfully absorbed. Enter your rate to see whether the increase flows to you, is absorbed, or leaves you under the new minimum and owed backpay. Employers: absorption is lawful, but check your contract/EA and never pay below the new minimum.

Last verified: 4 July 2026

What are you paid now (per hour, before tax)?*

E.g. a qualified hairdresser paid $30/hr enters 30.

How do you want to set the new award minimum?

Your award

Your classification level

Employment type

New minimum used: $26.44/hr.

Ordinary hours per week

hours

Used for the weekly / annual figures. Full-time is 38.

My contract or agreement says pay rises are paid ON TOP of award increases

Tick only if your written terms promise increases 'in addition to' your over-award pay. If it says your rate is 'inclusive of' award increases, leave unticked.

I'm on an annualised salary / set-off arrangement

Adds a note on the yearly reconciliation your employer must do against the award.

Which Awards Get a 2026 Pay Rise? Full Breakdown

The 2026 wage review decision hits 121 modern awards. See which ones move, by how much, and when the money lands in your account.

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

The Fair Work Commission handed down the Annual Wage Review 2026-27 decision on 2 June 2026. The National Minimum Wage rises 6% to $26.44/hour ($1,004.90/week) from 1 July 2026. Modern award minimum rates rise 4.75%. Full breakdown and calculators below.

Modern Awards Explained: How to Find and Comply With Your Award

A plain-English guide to modern awards in Australia for 2026. Learn what a modern award is, how to determine which one applies to your business, pay rates, penalty and overtime rates, allowances, and the most common compliance mistakes employers make.

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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.

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Do I Get the Pay Rise If I'm Paid Above the Award?

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