What did the AWR 2026-27 decision determine?

The Fair Work Commission handed down the 2026-27 decision on 2 June 2026. The decision split the increase: the National Minimum Wage rose 6% (to $26.44/hour, $1,004.90/week) and modern award minimum rates rose 4.75%, with the lowest C13/C14 classifications lifted to the new $26.44 floor. New rates take effect from the first full pay period on or after 1 July 2026 (with occasional 1 October 2026 deferrals for some hospitality, tourism and aviation awards).

Which percentage should I model for my staff?

Use 4.75% for employees paid at a modern award minimum rate — that's the confirmed 2026-27 award increase. Use 6% for any staff on the National Minimum Wage itself. The outcome came in above the employer submissions (2.0-2.5%) and, on the NMW, above the ACTU's 5.0% claim, so budget on the higher side if you have NMW-reliant staff.

Does my business have to pay the wage rise to above-award employees?

No. The AWR only legally requires you to pay the new rate to employees who are paid at the modern award minimum. Above-award salaried staff have no legal entitlement to the increase — though many employers pass it on to maintain pay relativities and retention. Use this tool to model both scenarios: legal floor (award-covered only) and full pass-through (all staff).

When do new award rates need to flow through payroll?

From 1 July 2026 for all hours worked. Major payroll software providers (Xero, MYOB, KeyPay, ADP) update the new modern award rates automatically within 7-14 days of the FWC decision. For employees paid the award minimum, this is mandatory and immediate. For above-award employees, your business choice. Late payment of the new minimum is recoverable as unpaid wages (up to 6 years) and carries Fair Work civil penalties.

AWR 2026-27 Impact Estimator — Employer

Model the cost of the Fair Work Commission's confirmed Annual Wage Review 2026-27 decision on your business — modern award rates +4.75%, National Minimum Wage +6%, from 1 July 2026. Multi-group input with full wage + super + workers comp impact. Pairs with the employee-side calculator.

Last verified: 16 May 2026

AWR 2026-27 IMPACT — EMPLOYER EDITION

Model the annual wage cost impact of the Fair Work Commission's confirmed Annual Wage Review 2026-27 decision (handed down 2 June 2026: award rates +4.75%, National Minimum Wage +6%, effective 1 July 2026). Add each group of award-covered employees. Above-award salaried staff are tracked separately — they're only affected if you choose to pass on the rise.

Employee groups

Headcount

Avg weekly wage ($)

Award-covered (auto-rises 1 July)

Group annual cost: $395,200

Headcount

Avg weekly wage ($)

Award-covered (auto-rises 1 July)

Group annual cost: $234,000

Your current annual wage base

Total headcount

8 award-covered

Award-covered annual wages

$395,200

Total all groups: $629,200

AWR 2026-27 scenarios — annual cost impact

Scenario	Wage rise	Super (12%)	Workers comp	Total impact
4.75% — Award rate (confirmed) Confirmed 2026-27 modern award increase	$18,772	$2,253	$244	$21,269
6% — National Minimum Wage Confirmed 2026-27 NMW increase	$23,712	$2,845	$308	$26,865
2.5% — Employer submission Employer-side submission (ACCI)	$9,880	$1,186	$128	$11,194
4.5% — ACTU submission ACTU 2026 submission	$17,784	$2,134	$231	$20,149
3.5% — 2025-26 baseline Last year's decision, for comparison	$13,832	$1,660	$180	$15,672

Highlighted row is the confirmed 2026-27 modern award increase (4.75%).

Decision-day planning

FWC decision lands first week of June 2026. Operative date 1 July 2026 (1 October for hospitality/tourism/aviation if deferred).
The Wage Price Index lift is automatic for award-covered staff — no choice. Above-award salaried staff are at your discretion.
Payroll software (Xero, MYOB, KeyPay, etc.) updates the new award rates automatically within 7-14 days of the decision. Check.
For high-volume award-covered workforces (50+), consider an automated reconciliation tool. Single-employee audit is built into Pay Rate Lookup; bulk audit needs For Business.
Workers compensation premium reset typically lags wages by a quarter. The increase compounds with the next premium notice.

Annual Wage Review 2026 Decision Day: When, Where and How to Watch

The Fair Work Commission Expert Panel hands down the 2026 minimum wage decision in early June. Here's the likely date and time, the FWC livestream link, what gets announced, and when your award rate actually changes.

Minimum Wage Australia 2026: $26.44/hr From 1 July (+6% Rise Explained)

The national minimum wage is $26.44/hr ($1,004.90/wk) from 1 July 2026 — up 6% from $24.95. Award minimums rose 4.75%. Junior and casual rates inside.

How the 2026 Annual Wage Review Decision Compared to Predictions

The 2026 Annual Wage Review delivered a 6% increase — above most forecasts. How union claims, employer submissions and predictions compared to the final decision.

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General information and estimates only — not legal, financial or tax advice. Always check your specific award, agreement or contract, or a qualified professional, before you rely on the result.

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