National Minimum Wage and Award Wage Increases from 1 July 2026: What Employers Need to Know
Posted on Arilp 22, 2026 by The HR Bridge Team
The Fair Work Commission (FWC) has handed down its Annual Wage Review 2026 decision, delivering a 4.75% increase to the National Minimum Wage and minimum pay rates under modern awards.
These changes will take effect from the first full pay period starting on or after 1 July 2026.
Key Details of the Increase
- National Minimum Wage will rise to $1,004.90 per week or $26.44 per hour.
- Modern award minimum wages will increase by 4.75% across the board.
- The lowest entry-level rates (first 6 months) will be at least $978.10 per week or $25.74 per hour.
- These increases apply to award-covered and award-free employees alike.
Note: The Fair Work Commission is the independent national workplace relations tribunal responsible for annual wage reviews — separate from the Fair Work Ombudsman.
Why This Matters for Your Business
With labour costs rising, timely implementation is critical. Failing to update wages by the deadline can result in:
- Underpayment claims and backpay obligations
- Fair Work Ombudsman investigations and penalties
- Employee dissatisfaction and higher turnover
This increase is particularly relevant for SMEs in sectors like hospitality, retail, childcare, healthcare, trades, and administration, where award reliance is high.
What You Should Do Now
- Review your current pay rates against the new minimums for all employees.
- Update payroll systems, contracts, and rosters before the end of June.
- Communicate the changes clearly to your team.
- Check for any offsetting arrangements or absorptions allowed under specific awards.
Official Resources (Fair Work Ombudsman):
- Minimum wages increase from 1 July 2026
- Pay and Conditions Tool (updates coming soon)
- Subscribe to FWO email alerts for the latest tools and rates.
How HR Bridge Australia Helps You Prepare
At HR Bridge Australia, we support Perth, WA, and national SMEs with expert guidance on wage changes and compliance:
- Award interpretation and wage audits to ensure you meet the new rates
- Payroll reviews and back-pay calculations
- Updated employment contracts and policies
- Manager training on implementing wage increases
- Full outsourced HR and compliance support to simplify compliance
Acting early helps you avoid last-minute stress and costly errors.
Don’t leave it until July. Get your payroll ready now and maintain strong employee relations.
Need help reviewing your wages, updating contracts, or preparing for the 1 July changes? Contact HR Bridge Australia today for a no-obligation consultation.
HR Bridge Australia — Expert HR Outsourcing | Fair Work Compliance | Recruitment & Policies for SMEs 
Leederville, Perth WA | Serving businesses across Australia www.hrbridgeau.com | Contact Us
