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Every year the Fair Work Commission reviews Australia's minimum wages. The 2026 decision took effect from the first full pay period starting on or after 1 July 2026. If you employ people in Australia, directly or through an Employer of Record, these are the changes to check.
The headline numbers
- The National Minimum Wage rose to $26.44 an hour, or $1,004.90 a week, an increase of 5.97%. It applies to award-free adult employees.
- Modern award minimum rates rose by 4.75% for most classifications.
- The lowest award classifications received additional increases as the Commission begins phasing out the lowest entry-level rates.
Who is affected
The National Minimum Wage applies to employees who are not covered by a modern award or enterprise agreement. Most Australian employees are covered by an award, and for them the relevant figure is the 4.75% increase to their award classification rate.
Employees on enterprise agreements are paid under the agreement, but their base rate of pay can never fall below the relevant award rate. If an agreement's rates have fallen behind, employers must make up the difference.
Employees paid well above the minimum are not automatically entitled to a rise. However, their pay must still satisfy every award obligation that applies to them.
What employers should check
- Identify the award and classification for every employee. The increase applies to the classification rate, not to a single national figure.
- Update pay rates in payroll from the first full pay period starting on or after 1 July 2026.
- Check allowances. Many award allowances are expressed as a percentage of a standard rate and move with the review.
- Review annualised salaries. If you pay an annual salary in place of award entitlements, check the salary still covers what the employee would have earned under the award.
- Remember super. Higher wages mean higher Superannuation Guarantee contributions at 12% of qualifying earnings, now paid each payday under Payday Super.
If you use an Employer of Record
The EOR must apply the new rates to the employees it employs for you. In practice that means:
- Your monthly invoice will rise for any employees on or near award minimums.
- The EOR should confirm the award and classification for each employee. If it has not, ask.
- If you set salaries in your home currency or as a fixed package, make sure the Australian dollar amount still meets the new minimum.
Related changes on 1 July 2026
Several other employment thresholds also changed on 1 July 2026:
- The high income threshold for unfair dismissal rose to $190,100.
- The maximum unfair dismissal compensation is now capped at $95,050 (half the high income threshold).
- Payday Super started, requiring super to be paid with each pay run.
- Government Paid Parental Leave increased to 26 weeks.
See our guide to Australian employment essentials for how these fit together.
Frequently asked questions
When did the new rates start?
From the first full pay period starting on or after 1 July 2026.
Do the increases apply to employees paid above the award?
The increases apply to minimum rates. An employee paid well above their award minimum may not need a pay rise to stay compliant, but check that their pay still covers all award entitlements they receive, such as overtime and penalty rates, if your contract relies on an above-award salary to absorb them.
Does the wage review affect super?
Indirectly. Super is 12% of qualifying earnings, so if wages go up, super contributions go up with them.
Does the increase apply to employees hired through an EOR?
Yes. The EOR, as the legal employer, must pay at least the new minimum rates. Expect it to pass the higher salary costs through on your invoice.
Sources
Last reviewed:
Figures on this page were checked against these official sources on 8 October 2026. Rates and thresholds change, often on 1 January, 1 April or 1 July, so confirm current figures before relying on them.
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