From the first full pay period on or after 1 July 2026, eligible employees must receive the new minimum wage rates announced by the Fair Work Commission.

Key Changes

National Minimum Wage

• Full-time adult rate: $1,004.90 per week(based on a 38-hour week)
• Hourly rate: $26.44
• Casual rate (including 25% casual loading): $33.05 per hour

Award-covered employees

 Most employees covered by an award receive a 4.75% increase to their minimum wages, subject to these floors:

• The lowest ongoing rate in any award must be at least $1,004.90 per week ($26.44 per hour)
• Entry-level rates (first six months or less) must be at least $978.10 per week ($25.74 per hour)

Important Points for Employers

• The increase applies from the first full pay period commencing on or after 1 July 2026.
• Most Australian employees are covered by an award, so the 4.75% increase will apply to the majority of award-reliant staff.
• Base rates under enterprise agreements cannot fall below the relevant award rate or the National Minimum Wage.
• Junior employees, trainees, apprentices and employees with disability have specific rate structures that also need to be checked.

Practical Steps for Businesses

1. Identify which employees are covered by an award, an enterprise agreement, or the National Minimum Wage.
2. Update payroll systems with the new rates before the first applicable pay period.
3. Use the Fair Work Ombudsman’s free Pay Calculator and updated pay guides to confirm correct rates.
4. Review classifications and ensure employees are still correctly classified under their award.
5. Communicate the changes clearly to staff where appropriate.

Fair Work Ombudsman Anna Booth reminded employers: “Employers must apply the new minimum wage from the first full pay period on or after 1 July to eligible employees… Any employers or employees with questions about the increase should contact the Fair Work Ombudsman for free advice and assistance.”

How HR Bridge Australia Can Help

At HR Bridge Australia, we assist SMEs with annual wage review implementation, award interpretation, payroll updates and compliance checks. Getting the July increase right protects your business from underpayment risks and ensures your team is paid correctly from day one of the new rates.

If you would like support reviewing your current rates, updating classifications, or confirming the correct increases for your workforce, we are here to help.