Question 1

What did the AWR 2026-27 decision determine?

Accepted Answer

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).

Question 2

Which percentage should I model for my staff?

Accepted Answer

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.

Question 3

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

Accepted Answer

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).

Question 4

When do new award rates need to flow through payroll?

Accepted Answer

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.

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

AWR 2026-27 Impact Estimator — Employer

Employee groups

Your current annual wage base

AWR 2026-27 scenarios — annual cost impact

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