The Fair Work Commission has announced a 4.75% increase to the National Minimum Wage and all Modern Award minimum wage rates.
The increase will apply from the first pay period commencing on or after 1 July 2026 and will affect employers covered by the National Industrial Relations System.
What Has Changed?
The new National Minimum Wage will increase to:
- $1,004.90 per week
- $26.44 per hour
This represents an increase of:
- $56.90 per week for a full-time employee working a 38-hour week
- $1.49 per hour for permanent employees
What Does This Means for Employers?
While updating Award rates is an important first step, employers should also use this opportunity to review broader remuneration arrangements across the business.
Particular attention should be given to:
- Modern Award classifications.
- Salary arrangements.
- Annualised wage arrangements.
- Flat-rate pay structures.
- Employment contracts.
- Payroll.
Businesses should ensure employees continue to receive at least their minimum Award entitlements once the increase takes effect.
Why is a Review so Important?
Recent Fair Work compliance crackdowns and court decisions continue to highlight the importance of ensuring employees are paid correctly for the work they perform.
A wage increase can affect existing salary or flat rate arrangements that may have previously met minimum Award obligations.
For some businesses, this may mean reviewing whether current remuneration structures continue to leave employees better off overall when compared to the applicable Award.
ProcessWorx Recommends:
Before 1 July 2026, employers should:
- Review all employee classifications.
- Update payroll systems and pay rates.
- Review flat or annualised rates.
- Confirm employment contracts remain compliant.
- Consider whether a Better Off Overall Test (BOOT) should be undertaken.
A BOOT assessment can help determine whether employees covered by salary, annualised wage or alternative pay arrangements remain better off overall following the wage increase.
If you would like assistance reviewing your pay rates, remuneration structures or conducting a BOOT assessment, the ProcessWorx team is available to help. Contact us on (08) 9316 9896 or get in touch.
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