Minimum Wage and Award Rates: What Changed From 1 July 2026

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Minimum Wage and Award Rates: What Changed From 1 July 2026

July 21, 2026
Minimum Wage and Award Rates: What Changed From 1 July 2026
IN EFFECT - These rates apply from the first full pay period starting on or after 1 July 2026 — not from that date itself. Employees on a weekly cycle that doesn't align with 1 July move to the new rate at the start of the next full pay period.

The Key Change

Following the Annual Wage Review 2026, the Fair Work Commission lifted the National Minimum Wage by 6% and modern award minimum rates by a separate 4.75%, both effective from 1 July 2026 — the first time the National Minimum Wage has passed $1,000 a week.

The National Minimum Wage, which applies to employees not covered by an award or enterprise agreement, changed as follows:

2025–26 2026-27
Hourly rate $24.95 $26.44
Weekly rate (38-hour week) $948.10 $1,004.90
Casual hourly rate (25% loading) ~$31.19 $33.05

The increase applies from the first full pay period starting on or after 1 July 2026, rather than from that date itself.

Minimum Award Wage Floors

Most employees are covered by a modern award rather than the National Minimum Wage directly. Award minimum rates rose 4.75% from 1 July 2026, subject to two floors: the lowest rate for ongoing employment in any award can't fall below $1,004.90 a week ($26.44 an hour) — matching the new National Minimum Wage — and entry-level rates, which typically apply for an employee's first six months, can't fall below $978.10 a week ($25.74 an hour).

Trainee rates under the National Training Wage increase on the same date, including awards that incorporate Schedule E of the Miscellaneous Award. Where an enterprise agreement applies, the increase generally flows through as well, since an agreement's base rates can't sit below the relevant award's base rates.

The Commission also confirmed a staged phase-out of the C13 classification level in some awards, shifting the minimum ongoing rate to the higher C12 level, with additional targeted increases for the lowest-paid employees as the first step in that transition.

Other Fair Work Changes From 1 July 2026

  • Children's Services and Pharmacy Award rates: increasing in two steps — first from the pay period on or after 30 June 2026, then again from the period on or after 1 July 2026.
  • Payday Super: employers must now pay super at the same time as wages — see our separate article on what this involves.
  • Unpaid flexible parental leave: increasing to up to 130 days, for a child born or placed for adoption on or after 1 July 2026.
  • Government-funded Parental Leave Pay: increasing from 120 to 130 days.
  • High income threshold (and contractor high income threshold): both increasing to $190,100.
  • Unfair dismissal compensation cap: increasing to $95,050.

Sources & References

Fair Work Ombudsman: Minimum wages increase from 1 July 2026

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