02/06/2026
On 2 June 2026, the Fair Work Commission handed down its Annual Wage Review 2026 decision and raised Award wages by 4.75%.
Employers must pay the higher rates of pay from the first full pay period that starts on or after 1 July 2026.
The National Minimum Wage applies to employees not covered by Awards or enterprise agreements. From 1 July 2026 the National Minimum Wage will be increased to $1004.90 per week (based on a 38 hour week) or $26.44 per hour.
Employees covered by an enterprise agreement must not be paid less than the minimum rate of pay in the Award that covers them, or the National Minimum Wage if an Award does not apply. The Fair Work Commission has implemented structural changes and additional increases for the lowest paid Award classifications.
Employers should take steps to review the rates of pay in any current enterprise agreement to ensure these rates of pay are not less than the new minimum Award rates. If the rates of pay for any employees have fallen below the minimum Award rate or National Minimum Wage (as applicable) you must pay them equal to the new minimum rates of pay.
In summary:
- ensure Award covered staff are paid consistently with the increased Award rates
- for organisations with enterprise agreements, ensure the base rate of pay is consistent with the increased Award rates
- for staff not covered by an Award or Enterprise Agreement, ensure staff are paid above the increased Minimum Wage
- minimum entitlements are taken into consideration in any agreed set off remuneration packages.
If your organisation requires assistance understanding the effect of the Annual Wage Review, including its impact on employees covered by enterprise agreements, contact us at enquiries@griffinlegal.com.au.